FDIC Chief Urges Deposit Insurance Reform: Depositors...

FDIC Chief Urges Deposit Insurance Reform: Depositors should be required to pick up more of the cost when financial institutions fail, L. William Seidman, chairman of the Federal Deposit Insurance Corp., told the House Banking Committee. However, Seidman said he is not yet prepared to endorse any specific plan to alter the current federal insurance system. The FDIC currently protects deposits up to $100,000. Seidman also said the corporation is studying a proposal to prohibit so-called golden parachutes for managers of banks that fail. The hearing was the first in a series to be devoted to the issue of deposit-insurance reform.