The FDIC says it should be given the ability to insure some bank account balances above its standard $250,000 cap in order to preserve financial stability in the future.
A proposed merger between two funds that insure excess deposits at Massachusetts savings and cooperative banks could happen later this month.
After 85 years operating separately to insure deposits in Massachusetts banks, the state’s two insurance funds have decided to merge. The Depositors Insurance Fund and the Co-operative Central Bank see their proposed merger as a way to increase efficiencies.
In a few days, Brookline Bank will no longer be a member of the state’s Deposit Insurance Fund, a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at member banks. It’s only the fourth such departure since 1934.
The FDIC has approved New Valley Bank & Trust’s application for deposit insurance.