It was raised during the recession, possibly to boost confidence (but honestly, to maintain coverage with inflation it was overdue). There were talks for it to be a temporary raise, but I don't see anything about lowering it now. I guess it's permanent.
(but honestly, to maintain coverage with inflation it was overdue) I have to disagree.
Prior to the increase there was $100,000 of coverage. In 1934 when the program was started there was $2,500 of coverage. After adjusting for inflation this $100,000 (2011) would be worth $6,055.12 (1934). [1]
The rate was raised to $100,000 in 1980. Adjusting for inflation from 1980 to current, the $100,000 would be worth $275,000 by today's standards. The move to $250,000 was overdue.
The prior rates are irrelevant to my point. See www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_1.pdf for discussion of historical FDIC rates, and the reasoning behind them.
It was actually because of lobbying from printing companies so they could profit by changing all FDIC insurance signs at banks. Just kidding, you are correct, inflation should have pushed this up to $250k quite some time ago.
