GAO Chief Warns of Banking Reform: Tinkering...
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From Times Staff and Wire Reports
GAO Chief Warns of Banking Reform: Tinkering with deposit insurance while the banking system is fragile could trigger “major runs” nationwide, the comptroller general of the General Accounting Office, Charles A. Bowsher, told the Senate Banking Committee. Bowsher warned that even minor changes in the current $100,000 account limits could trigger panic among small depositors. He pointed to runs in January against Rhode Island banks, even though state-insured credit unions were in trouble, not banks.
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