Yellen: Not Considering Broad Deposit Insurance Increase

The transcript discusses the process and considerations involved in handling bank failures in the U.S. It highlights the role of congressional approval for banks over $250,000 and the systemic risk exception that allows the FDIC to protect all depositors. The decision to invoke this exception is made on a case-by-case basis, involving the FDIC board, the Fed board, and consultation with the president. The transcript clarifies that blanket insurance or guarantees are not currently being considered.

What is required for a bank failure involving over $250,000 to receive congressional approval?

What is the role of the FDIC board in determining bank failures?

What does the term 'systemic risk' refer to in the context of bank failures?

What does the systemic risk exception allow the FDIC to do?

What considerations are made regarding blanket insurance or guarantees for depositors?