US Treasury not looking to expand deposit insurance programme, Yellen says

The head of the US Department of the Treasury said that her agency had not looked at expanding the country's deposit insurance programme, although in individual cases that was a possibility if needed.

In testimony to the Senate, Janet Yellen said that the Treasury had not looked at expanding the Federal Deposit Insurance Corporation's deposit insurance programme.

"This not something we have looked at, it's not something that we're considering."

During a contagious bank run, the Treasury would likely seek an exception that would allow such a move, but that would come on a case-by-case basis, she reportedly added.

The day before, Bloomberg had reported that staff at the Treasury were reviewing if federal government regulators had sufficient authority to insure deposits for more than $250,000 on most accounts without having to seek approval from Congress.

One option reportedly discussed to expand FDIC insurance was through use of the Treasury's Exchange Stabilization Fund.

According to the Wall Street Journal on Wednesday, some lawmakers and lenders were discussing an expansion, but some influential Republicans and officials from the Biden administration hadn't endorsed such an overhaul.