The Fed's Backstop on Uninsured Deposits

A massive flight to safety by uninsured depositors has now resulted in the biggest bank failure since 2008. The panic would truly be over if Congress stepped up with a backstop that made bank deposits safe again. We are now setting ourselves up for more banks to fail, which will worsen the outcome for the U.S. economy. Just look at the downgrade of Caterpillar and United Rentals earlier this week.