WASHINGTON (Reuters) - Republican Sen. John McCain on Tuesday backed increasing the limit on bank deposits guaranteed by the federal government to $250,000 from its current level of $100,000.
In an interview with CNN, McCain said he spoke to President George W. Bush on Tuesday morning and recommended that Federal Deposit Insurance Corp. limits be raised to help protect Americans’ bank deposits.
McCain’s opponent, Democratic Sen. Barack Obama, made a similar suggestion on Tuesday in a statement.
“Also the treasury has the ability to buy up a trillion dollars worth of mortgages. We should move forward on that as we are crafting this rescue bill,” McCain said.
A day after the House of Representatives failed to approve a $700 billion Wall Street bailout, sending the U.S. stock market into a tailspin, McCain said the U.S. Congress needs to back a short-term plan that can restore confidence.
“We’re not going to get a unanimous vote. But I‘m convinced that yesterday’s events and reactions of $1.2 trillion being wiped out .. Americans are frightened right now,” he said. “We’ve got to give them a short-term plan ... then a long term plan.”
Reporting by Deborah Charles; Editing by Theodore d'Afflisio