House Conservatives Voice Opposition To Any Increased Guarantees On Bank Deposits

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The House Freedom Caucus said Monday it disagreed with an increase in bank deposit guarantees, which have drawn interest in recent weeks following the collapse of two major US banks.

Members of the House Freedom Caucus issued a statement Monday saying they were concerned about the "massive government bailout" of the banks. A group that includes conservative Republican members as representatives. Lauren Boebert (Colo.) and Scott Perry (Pa.) said in statements that bank failures are caused by regulators, not regulators, and that they would oppose a raise at the Federal Reserve. Bank Deposit Insurance Company (FDIC), currently limited to $250,000.

"The House Department's Freedom Caucus is firmly committed to ending the runaway spending and inflation that underlies the current chaos in Washington's banking system," the statement said.

"Furthermore, House Freedom Caucus members reject any universal bank deposit guarantee above current limits and any attempt to impose unnecessary and onerous regulations or fees on innocent small and medium-sized banks (and their customers). This crisis," it says the notice.

Sen. Elizabeth Warren (D-Mass.) said Sunday that Congress should increase the federal insurance limit for bank deposits to $250,000.

"We have to do this because these banks aren't regulated enough," Warren said on CBS's Face the Nation. "And as we open up the borders, we will be more dependent on regulators to do their job."

The FDIC currently insures deposits of up to $250,000 per customer, but Warren said last week those limits apply to individuals, not small businesses or nonprofit organizations. The Massachusetts senator blamed the collapse of Silicon Valley Bank and Signature Bank earlier this month on lax banking regulations that would have brought down banks and the tech industry.

The House Freedom Caucus also blamed the Federal Reserve's decision to raise interest rates for contributing to "soaring" inflation. The members called on the Federal Reserve to "abandon" the Bank Term Funding Program created after the Silicon Valley collapse to "ensure that banks can meet the needs of all their depositors."

“Any universal guarantee for all bank deposits, whether implicit or explicit, perpetuates a dangerous precedent that only encourages payment for future irresponsible behavior by disgruntled, rule-abiding individuals,” he said.

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