A former Federal Deposit Insurance Corp. chairman warned community bankers Monday that calls to double deposit insurance coverage are misguided and would spell disaster for the system.

“I believe increasing deposit insurance to $200,000 — that is, doubling the current $100,000 level — risks efforts to privatize the deposit insurance fund, and that’s too great a risk to take,” said Ricki Helfer, who is currently a consultant for America’s Community Bankers.

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