“They could boost FDIC insurance to $500,000 on all small and regional banks”
That is the move I would expect. Inflation is already eating away the usefulness of the $250K limit anyway.
That will help consumer confidence, but I doubt it will be sufficient for business’ confidence.
Businesses or anyone with more than $250k in an account, has got to be thinking about taking the excess out and spreading it to other banks
I think the Federal Reserve needs to announce that it will loan funds against any long term Government bonds to insure bank liquidity. Or just buy up those bonds as necessary.
I think that would go a long way to eliminating any panic.
They need to seriously look at ways to shore up banks that are having runs, without takeovers. I think it would be far less disruptive and less expensive if they can do that.