FDIC Chairman Sheila Bair gives her opinion about the good points of the financial reform bill that was passed by the Senate yesterday and will soon be signed by the President. From the FDIC press release:
From the outset of this process, the FDIC has pushed for a credible resolution mechanism that provides the authority to liquidate large and complex financial institutions in an orderly way. The legislation will enforce market discipline by making clear that shareholders and creditors bear the losses for the risks they take. It also will protect taxpayers by empowering the government with the means to end Too-Big-to-Fail and providing substantial new protection to consumers and the financial system.
There was no mention that the bill will make the $250K deposit insurance limit permanent. I'm sure the FDIC will update its website soon after the President signs the bill into law. The deposit insurance change is definitely in the bill. Please see my blog post for the full details