Uncertainty over FDIC insurance is affecting structured products industry
The US government is currently deciding whether to permanently increase the deposit insurance cover to $250,000 per depositor. The uncertainty is creating problems for the certificate of deposit industry.
The US Federal Deposit Insurance Corporation (FDIC) says it will apply any change in deposit coverage amounts after 2013 to investments already in circulation, which could have a knock-on effect on the deposit-based structured products industry in the US.
An FDIC spokesperson says the agency is awaiting a decision from the US Congress on whether or not the higher limit of $250,000 is to be extended beyond December 31, 2013 and made permanent as part of the Congress’ regulatory reform legislation
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