The Bloomberg news wire has a story that Sheila Bair, chairman of the FDIC, has told House Financial Services Committee chairman Barney Frank that the agency will “be requesting authority to increase deposit insurance limits,” says Frank. No details yet, but both Barack Obama and John McCain want to raise the insurance limit to $250,000.

The news article also says that New Hampshire Senator Judd Gregg, the chief negotiator for the Senate Repubicans on the bailout, is willing to consider proposals not only to raise the amount of insurance but an expanded FDIC role.

I smell a deal coming.