U.S. should temporarily guarantee all bank deposits, senior House Republican says
The government should temporarily insure every bank deposit in the country to shore up confidence in the U.S. financial system, a senior GOP lawmaker said Tuesday.
Rep. Blaine Luetkemeyer of Missouri — a top member of the House Financial Services Committee and a former banker — said in an interview that such a move would help the smallest banks as they deal with the fallout of the collapse of regional lenders Silicon Valley Bank and Signature Bank. The Biden administration and regulators have already guaranteed all the deposits at the two banks — above the deposit insurance limit of $250,000 — to mitigate economic damage.
Luetkemeyer said expanding the safety net would “give the system confidence.”
“If you don’t do this, there’s going to be a run on your smaller banks,” he said. “Everyone’s going to take their money out and run to the JPMorgan’s and these too-big-to-fail banks, and they’re going to get bigger and everybody else is going to get smaller and weaker, and it’s going really be bad for our system.”
https://www.politico.com/news/2023/0...lican-00086974