US Lawmaker Divisions Over FDIC Cap Threaten Action on Failing Banks
- Mid-size banks have asked regulators to lift current cap
- Warner ‘open’ to raising FDIC insurance cap but urges caution
Senator Elizabeth Warren and Senator Mark Warner
Photographer: Al Drago/BloombergThis article is for subscribers only.
House conservatives said they would oppose any universal guarantee of bank deposits above the current $250,000 FDIC insurance cap, even as other lawmakers said they’re weighing a statutory increase in the limit following two recent bank collapses.
The House Freedom Caucus’s position complicates any congressional effort to raise the Federal Deposit Insurance Corporation limit on deposit insurance. Republicans control the House with just a four-seat majority, and the bloc of about two dozen populist representatives holds significant sway over House Speaker Kevin McCarthy and his leadership team.