Midsize banks press FDIC to insure all deposits over next two years - Bloomberg
Mar. 19, 2023 12:15 AM ETSVB Financial Group (SIVB), SNV, SBNY, VLYUMBF, BKU, FFWMBy: Jonathan Block, SA News Editor167 Comments
- A group representing midsize US banks has sent a letter to the FDIC asking the agency to insure all bank deposits for the next two years.
- The Mid-Sized Bank Coalition of America (MBCA) argued the protection is needed to stabilize the banking sector, prevent more failures, and stop the increase in withdrawals from smaller banks, Bloomberg reported.
- "Notwithstanding the overall health and safety of the banking industry, confidence has been eroded in all but the largest banks," the letter stated. "Confidence in our banking system as a whole must be immediately restored."
- The letter was also sent to Treasury Secretary Janet Yellen, the Comptroller of the Currency, and the Federal Reserve.
- MBCA members include BankUnited (BKU), Synovus Financial (NYSE:SNV), First Foundation (FFWM), Valley National Bancorp (NASDAQ:VLY), and UMB Financial (UMBF).
- The request comes in the wake of the busts of Silicon Valley Bank (NASDAQ:SIVB) and Signature Bank (NASDAQ:SBNY).