Berkshire Tightens Insurance for Bank Deposits

By: AP
By: AP

CHARLOTTE, N.C. (AP) _ A Kansas company that's part of Warren Buffett's Berkshire Hathaway Inc. has stopped selling private bank deposit insurance above the amount guaranteed by the federal government.

The moves signals that the billionaire investor may be worried about future bank failures.

Kansas Bankers Surety Co. confirms Wednesday that it has ceased soliciting new clients for their "bank deposit guaranty bonds,'' a product that backs deposits above the $100,000 limit that is guaranteed by the Federal Deposit Insurance Corp. for many bank accounts.

It also plans to cancel existing policies in coming months.

Chuck Towle is a senior vice president of the Topeka, Kan.-based company. He declines to comment on why his firm is leaving the business, and he wouldn't confirm or deny Buffett's involvement.

A spokeswoman for Omaha, Neb.-based Berkshire Hathaway said the company did not have an immediate response.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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