Obama proposes raising FDIC limit

WASHINGTON, Sept. 30 (UPI) -- Sen. Barack Obama, D-Ill., called for increasing federal deposit insurance from $100,000 to $250,000 to help restore confidence in the U.S. financial system.

The Federal Deposit Insurance Corp.'s $100,000 current limit is "more than adequate for most families," but inadequate for small businesses that keep bank accounts to meet payroll, buy supplies and invest, the Democratic presidential candidate said on his Web site Tuesday.

Raising the FDIC limit to $250,000 as part of an economic bailout package would "boost small businesses, make our banking system more secure and help restore public confidence in our financial system," Obama said.

Obama also called for Democrats and Republicans to "come together to meet this crisis" after the House rejected a $700 billion bailout Monday. He said he would be speaking with congressional leaders on the matter.

"While I, like others, am outraged that the reign of irresponsibility on Wall Street and in Washington has created the current crisis," Obama said, "I also know that continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families."