WASHINGTON, Sept. 30 (UPI) -- Sen. Barack Obama, D-Ill., called for increasing federal deposit insurance from $100,000 to $250,000 to help restore confidence in the U.S. financial system.

The Federal Deposit Insurance Corp.'s $100,000 current limit is more than adequate for most families, but inadequate for small businesses that keep bank accounts to meet payroll, buy supplies and invest, the Democratic presidential candidate said on his Web site Tuesday.

Raising the FDIC limit to $250,000 as part of an economic bailout package would boost small businesses, make our banking system more secure and help restore public confidence in our financial system, Obama said.

Obama also called for Democrats and Republicans to come together to meet this crisis after the House rejected a $700 billion bailout Monday. He said he would be speaking with congressional leaders on the matter.

While I, like others, am outraged that the reign of irresponsibility on Wall Street and in Washington has created the current crisis, Obama said, I also know that continued inaction in the face of the gathering storm in our financial markets would be catastrophic for our economy and our families.

WASHINGTON, Sept. 30 (UPI) -- Republican presidential candidate John McCain said Tuesday he floated three ideas past President Bush to provide short-term U.S. financial relief.

McCain's recommendations:

-- Use $250 billion from the Treasuries Exchange Stability Fund to prop up troubled institutions.

-- Push the U.S. Treasury to use its ability to buy up to $1 trillion worth of mortgages.

-- Raise the the Federal Deposit Insurance Corp.'s $100,000 limit to $250,000.

McCain discussed the proposals on CNN's American Morning.

The Arizona Republican said he couldn't convince some of the 133 Republicans who voted against the $700 billion bailout plan for U.S. market systems because we haven't' convinced people that this is a rescue effort not just for Wall Street but for Main Street America.

McCain, who suspended his campaign last week to focus on the crisis, said he would do whatever it takes to press for a bill Democrats and Republicans can support and Bush will sign.

In the long term, McCain said his plan would include cutting spending, balancing the budget, achieving energy independence and giving people the ability to stay in their homes and keep their jobs.

JUNEAU, Alaska, Sept. 30 (UPI) -- An Alaska judge has merged two lawsuits challenging the right of the legislature to investigate Gov. Sarah Palin's firing of her public safety commissioner.

A hearing is scheduled Thursday, the Anchorage Daily News reported.

Critics say that Palin, the Republican vice presidential nominee, fired Public Safety Commissioner Walter Monegan because he refused to dismiss her former brother-in-law, a state trooper, who was involved in a nasty divorce case with her sister.

The merged lawsuits were filed by the state attorney general and by five Republican legislators. Last week, members of Palin's staff, acting on advice from the attorney general, ignored subpoenas to testify before a legislative committee.

The lawyer for the Republican lawmakers wants Democratic Sen. Hollis French of Anchorage or the chief investigator in the case to testify.

A spokeswoman for the Republican presidential campaign called the investigation a political circus.

WASHINGTON, Sept. 30 (UPI) -- Democrats say they're prepared to let Sen. Joe Biden of Delaware be himself during Thursday's vice presidential debate.

Some campaign observers say Biden has a penchant for gaffes and the Republican National Committee Web site even has a Joe Biden Gaffe Clock. But Kiki McClean, an adviser to Sen. Hillary Clinton, D-N.Y., said Biden's errors are very human moments.

Biden is very on-message on foreign policy and the economy, McClean said.

Republican presidential hopeful Sen. John McCain of Arizona and the GOP jump on Biden's miscues -- such as calling brigades of soldiers battalions.

Biden spokesman David Wade defended his boss, telling The Washington Post, Unlike other campaigns that sequester running mates, we'll proudly continue to unleash Joe Biden to be Joe Biden.

Democratic standard-bearer Barack Obama, referring to Biden, recently told NBC, I am very proud of the choice that I made.

Some Democrats -- including Biden -- suggested Clinton would have been a better VP choice.

A presidential race as tight as this one means mistakes will be exploited, said Dan Bartlett, a McCain supporter and former adviser to President George Bush.

(Biden) has this unique capability for someone who is so smart on the issues making these mistakes, Bartlett said.

MOGADISHU, Somalia, Sept. 30 (UPI) -- Gunfire broke out Tuesday on a Ukrainian cargo ship hijacked by Somali pirates in the Indian Ocean, Kenyan officials said.

Andrew Mwangura of the Kenya Seafarers Association told CNN it was unknown if the gunfire was between rival hijackers or between the hijackers and authorities stationed on nearby vessels off the coast of Somalia.

On Monday, a shootout between rival hijacker factions aboard the Ukrainian MV Faina killed three of the pirates, the broadcaster said.

The pirates, who are demanding $20 million for the release of the ship loaded with Soviet-era tanks and weapons, are split between moderates who want to surrender and hard-liners who don't, Mwangura said.

U.S. Navy ships have approached the Faina but are not involved in negotiations between the pirates and vessel's owner, Lt. Nathan Christensen told CNN, adding, There are now several U.S. ships keeping vigilant watch. We want the crew to remain safe and for the cargo not to fall into the wrong hands.

GALVESTON, Texas, Sept. 30 (UPI) -- The Galveston, Texas, survivors of Hurricane Ike say they are facing a new problem as they try to reconstruct their lives -- rampant mold.

Mold is becoming endemic in water-damaged buildings in the hurricane-ravaged Gulf Coast city. It is thriving in damp, hot buildings whose doors and windows have been sealed for nearly two weeks, the Houston Chronicle reported Tuesday.

The new health hazard is being confronted by Galveston residents and business owners who last week were allowed to return to their properties for the first time since the Sept. 13 hurricane. Many of them say they are baffled at how to fight the mold.

At one grocery store, the owners' family put on respirator masks, rubber boots and gloves and plastic jumpsuits to attack the multi-colored mold spores as well mildew and flies that overran the flooded building.

You don't know how far the mold goes, medical student Doug Heiner, 26, told the Chronicle as he cleaned his 1960s rambler, whose front yard was littered was discarded chairs and shelving. I thought, with some of the furniture, you'd be able to wipe it off.