Big banks look to fight against potential $10M FDIC cap, WSJ reports

Treasury Secretary Scott Bessent and Sen. Elizabeth Warren both want to increase the $250,000 limit on insured deposits, Dylan Tokar of The Wall Street journal reports. This alliance is boosting efforts from midsize banks, which argue higher caps would deter rapid bank runs. Bessent and Warren’s efforts have helped spark a Senate bill that proposes increasing the insurance limit by as much as $10M for certain accounts. For large banks, which are the biggest funders of the Federal Deposit Insurance Corp, FDIC, a cap of this size would come with a big price tag. Publicly traded companies in the space include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC).