More protection for US bank clients soon

WASHINGOTN: The Federal Deposit Insurance Corp will get more authority to protect consumers against bank failures under financial-rescue legislation Congress plans to take up this week.

The measure allocating the last $350 billion from the rescue package passed in October would make permanent the FDIC's deposit insurance limit of $250,000 per consumer per bank. It more than triples the amount the FDIC can borrow from the Treasury to replenish its insurance fund.

"It gives consumers the confidence that they can continue to do business with banks and safely invest in higher amounts," John Taylor, president of the National Community Reinvestment Coalition, said in a telephone interview.

Regulators shut 25 banks last year, the fastest pace since 1993, draining $11 billion from the insurance fund through nine months.