WASHINGTON - Proponents of private deposit insurance are hoping the Republican push to shrink government will create a more favorable climate for their plan, which withered in prior legislative sessions.

Rep. Scott Klug, R-Wis., the party's point man on legislative efforts to downsize the federal government, endorsed a bill last week to replace federal deposit insurance with a system of "cross-guarantees" under which groups of depository institutions would insure each other.

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