How the state could take control of the banking system

Americasbankingfdicsvb’ conflagration may have died down, but the clean-up continues. Small and midsized banks have lost about $260bn in deposits this year. The continues to plug much of the gap, having lent nearly $150bn to banks via its emergency schemes. Next year the Fed must decide whether to prolong them. By May 1st the Federal Deposit Insurance Corporation () will produce a menu of options for Congress about how to reform or expand the backstop the regulator provides, which is currently capped at $250,000 per depositor. Many blame the limit for the run which brought down .As happens after every banking panic, the safety-net is being remade. And so regulators must again confront a profound question: how far into finance should the hand of government reach?