The Mid-Size Bank Coalition of America has asked the government to make sure that everyone’s deposits in banks are safe for the next two years. They believe this will help stop more banks from going out of business, so people won’t worry and be scared while saving their money. It’s important that we restore people’s trust before something bad happens and causes a bigger financial crisis.
Are All Bank Deposits Safe? MBCA Wants the FDIC to Guarantee Security for Two Years!
The Mid-Size Bank Coalition of America (MBCA) has asked the government to make sure all deposits will be safe for two years. MBCA represents around 110 banks, and some of them have dollars worth $100 billion! They wrote a letter to the FDIC, OCC, Federal Reserve, and Treasury Secretary Janet Yellen explaining their request.
If we do this, it will instantly stop people from taking their money out of small banks, make the banking system strong again and greatly reduce the chances that any more banks will close down.
Recently, some big banks like Silicon Valley Bank and Signature Bank have had problems. This has made lots of people move their money from smaller regional banks to even bigger ones like JPMorgan Chase and Bank of America. People want to keep their money safe, so they are putting it in places that are thought too big for any bad thing to happen to them.
The group said that people are not trusting banks as much anymore, except for the biggest ones. They asked to get the trust in banks back fast so nobody will worry and nobody will take their money out of banks in a panic if another bank has problems. It is really important that people stay calm and have confidence in banks again before anything bad happens.
A group of people said that if the government guarantees all deposits, there will be a smaller chance of needing them in the future. But U.S. Treasury Secretary Janet Yellen said recently that not all bank deposits without insurance will be safe in case of a bank failure. Congressman Blaine Luetkemeyer even warned that if the government doesn’t guarantee all deposits, lots of people might take their money out of small banks.
Do you agree that the Federal Deposit Insurance Corporation (FDIC) should protect all deposits for the next two years? Let us know what your opinion is by writing it in the comments at the bottom.