The move to expand FDIC protections to cover all deposits in U.S. banks is likely to face pushback from House Republicans.
“The bailout means depositors will put their money in the riskiest banks and get paid higher interest…so in the long-run many more banks will fall, with far greater long-term costs.”from her speech, the Treasury Secretary is expected to talk about potentially expanding SVB-like protections to depositors in smaller banks, saying: “Our intervention was necessary to protect the broader U.S. banking system.
”Any effort to expand the FDIC limit to cover all deposits will likely face pushback from House Republicans. In a statement Monday, the hard-right House Freedom Caucus: “Any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules.
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