Gallego, Bipartisan Colleagues Introduce Deposit Insurance Legislation

WASHINGTON –Today,Senators Ruben Gallego (D-AZ), Angela Alsobrooks (D-MD), Bill Hagerty (R-TN), Catherine Cortez Masto (D-NV), Jim Banks (R-IN), Ruben Gallego (D-AZ), and Cindy Hyde-Smith (R-MS)introduced theMain Street Depositor Protection Actto raise deposit insurance coverage for non-interest bearing transaction accounts — commonly known as payroll accounts — at eligible banks and credit unions.
“In times of financial crisis, the biggest banks are bailed out and their customers are protected. Small businesses, especially those in rural Arizona who rely on small and community banks, deserve the same reassurance that their hard-earned money is safe,”said Senator Gallego.“This bipartisan bill levels the playing field and ensures that the backbones of our local economies remain strong and secure.”
“I am proud to have worked with Senator Hagerty to introduce our updated Main Street Depositor Protection Act with Senators Cortez Masto, Hyde-Smith, Gallego, and Banks. This bipartisan legislation would require a data driven process to increase deposit insurance coverage levels for business checking accounts at most banks and credit unions. Our small businesses are the backbone of the American economy, and they often rely on community banks and credit unions. Responsibly raising the deposit insurance threshold will protect employees and businesses in times of crisis and strengthen our overall financial system,”said Senator Alsobrooks.
“The banks that serve Main Street must have the same chance to succeed as the banks that serve Wall Street. This bipartisan, bicameral bill advances the Administration’s priority of preserving the central role of regional and community banks in the financial system of the future. It’s narrowly targeted to address a very specific concern that manifested itself during the Silicon Valley Bank collapse — a run on non-interest bearing transaction accounts typically used to make payrolls by small businesses that are very important customers for our local and regional banks,”said Senator Hagerty.
“The small businesses that support our neighborhoods deserve peace of mind that the bank accounts they use for payroll and purchases will be insured,”said Senator Cortez Masto.“Increasing the insurance coverage levels on bank accounts that don’t generate interest is a commonsense way to ensure America’s main street is also protected if their bank unexpectedly fails.”
“Community banks and credit unions represent a cornerstone for upholding most small businesses and start-ups in Mississippi and other states.  This bipartisan legislation authorizing the FDIC to raise the deposit insurance cap will protect not only these financial institutions, but also the small businesses that rely on access to their capital,”said Senator Hyde-Smith.“Enacting this bill would be a win for small business growth, rural America, and our economy.”
Read full bill textHERE.