SNV - Midsize banks press FDIC to insure all deposits over next two years - Bloomberg

2023-03-19 00:15:05 ET

• A group representing midsize US banks has sent a letter to the FDIC asking the agency to ensure all bank deposits for the next two years.
• The Mid-Sized Bank Coalition of America (MBCA) argued the protection is needed to stabilize the banking sector, prevent more failures, and stop the increase in withdrawals from smaller banks, Bloomberg reported.
• "Notwithstanding the overall health and safety of the banking industry, confidence has been eroded in all but the largest banks," the letter stated. "Confidence in our banking system as a whole must be immediately restored."
• The letter was also sent to Treasury Secretary Janet Yellen, the Comptroller of the Currency, and the Federal Reserve.
• MBCA members include BankUnited ( BKU ), Synovus Financial ( SNV ), First Foundation ( FFWM ), Valley National Bancorp ( VLY ), and UMB Financial ( UMBF ).
• The request comes in the wake of the busts of Silicon Valley Bank ( NASDAQ: SIVB ) and Signature Bank ( SBNY ).

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