Lawmakers are all over the place on whether to increase the deposit insurance cap.
House Financial Services Chair Patrick McHenry is signaling that he’s wary about making changes to the cap. | Francis Chung/POLITICOA Capitol Hill push to expand deposit insurance after last month’s bank failures appears to be stalling as lawmakers face resistance from the right and the left — and little pressure to act from industry.
It’s a void that’s left lawmakers all over the place, with at least one key leader — House Financial Services Chair“We’ve gone from the overreaction to a period of time where we’re thinking it through,” Sen.The fading urgency around expanding government deposit insurance — one of the Members of Congress on both sides of the aisle have since floated competing ideas about temporary and permanent expansions of deposit insurance. The limit hasn’t been raised since the 2008 financial crisis, which also triggered a sweeping overhaul of bank regulations.Elizabeth WarrenWarren has floated a potential expansion of coverage, in particular for payroll accounts, but is against an unlimited backstop. Rep.
But McHenry, whose committee would be responsible for crafting an expansion of deposit insurance on the House side, has shown no indication that he’s embracing it and downplayed the prospects for post-SVB legislation.
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