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Why some lawmakers want to raise the FDIC insurance limit for your savings

It would also help eliminate the incentive for large depositors in banks we all share to take their money out at signs of unease, said J. Michael Collins, a professor at the University of Wisconsin who focuses on consumer finance.

“When we know that those big depositors won’t make a run and take all the money out, then we’re guaranteed we can get our much smaller amounts back,” Collins said.