Moves On BBG Sources Piece Re: U.S. Studies Guaranteeing All Bank Deposits Partially Pared

A recently published BBG sources piece suggested that “U.S. officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis.”

• The piece went on to stress that “authorities don’t yet view such a move as necessary, especially after regulators took steps this month to help banks keep up with any demands for withdrawals, the people said, asking not to be named describing confidential talks. Still, they are developing a strategy out of due diligence in case the situation worsens.”
• E-minis ticked higher on the report, breaking Monday’s best levels, while U.S. Tsy futures ticked lower (TY futures didn’t challenge their Monday low) and USD/JPY pushed higher (not challenging Monday’s high). The initial knee-jerk moves have pulled back from extremes, with the presence of the phraseology noting that “authorities don’t yet view such a move as necessary” the limiting factor.