The Mid-Size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend insurance on all deposits for the next two years.
According to a March 18 Bloomberg report, the MBCA – a coalition of mid-size U.S. banks – sent a letter to the U.S. Federal Deposit Insurance Corporation (FDIC), asserting that extending insurance on “all deposits” would “immediately halt the exodus” of deposits from smaller banks.
The MBCA also reportedly noted that this action would “stabilize” the banking industry and significantly decrease the chances of “more bank failures.”
It was added that the MBCA proposed the insurance program be funded by the banks themselves, by raising the deposit-insurance assessment on lenders who opt to participate in the increased coverage.
Related: Marathon Digital: Deposits held at Signature Bank are secure and available
John Deaton, founder of legal news outlet Crypto Law Lawyer, predicted in a March 19 tweet to his 250,000 followers that up to 300 banks could go under if the FDIC fails to provide a guarantee.
I bet 2-300…