Senator Warren Calls on FDIC to "Quickly, Forcefully, and Publicly" Reject Backdoor Bailout Attempt by Big Banks
Press Release
Issues: Finance and Banking
"In simple terms, the biggest banks -- who have experienced a surge in deposits after the SVB failure, received favorable loans from the Fed's Bank Term Funding Program in March 2023, and had $30 billion of their own deposits guaranteed in the First Republic sale, -- are now seeking to pay back the gap in the deposit insurance fund with devalued assets, getting those assets off their books, while leaving the federal government to assume the risk.
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Approval of this proposal would be an outrageous breach of the FDIC's responsibilities, and I urge you to reject it or any similar approach that would unjustly enrich big banks at taxpayer expense."
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