Blaine Luetkemeyer (R-Mo.), a member of the House Financial Services Committee, told Politico Wednesday that the government should insure all bank deposits on a temporary basis. On Thursday, a consortium of 11 larger banks provided $30 billion to prop up California-based First Republic after its credit was downgraded by ratings agencies including Fitch, which cited “uninsured deposits as a percentage of total deposits” as a reason for the demotion.įTC eyes easier cancellations for free trials, subscriptionsĭemocrats dial up pressure on GOP over proposed spending cuts On Sunday, the FDIC, Treasury Department and Federal Reserve announced that they would fully insure deposits at Silicon Valley Bank (SVB) and Signature Bank after account holders started pulling out their money, causing the banks to fail.

With the House controlled by Republicans and the Senate by Democrats, any legislation on the financial sector would have to surmount numerous hurdles. “Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.”

Read more: What you need to know about this week’s banking crisis “When banks fail due to mismanagement and excessive risk taking, it should be easier for regulators to claw back compensation from executives, to impose civil penalties, and to ban executives from working in the banking industry again,” Biden said in a statement.

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