House financial services chairman Barney Frank wants to extend the TARP beyond its December 31 expiration date (the government bought preferred stock with a five year maturity, didn’t they?).
He also wants to extend the hike in deposit insurance to $250,000. That should be made permanent, in my opinion. Before crisis, the limit was $100,000, a figure which dates back to the Depression-era.
No market impact from the news.
