Sens. Bill Hagerty (R-TN) and Angela Alsobrooks (D-MD) introduced legislation that would seek to empower Main Street banks and credit unions by boosting their deposit insurance coverage for noninterest-bearing transaction accounts.
The Senate Republican and Democrat introduced the Main Street Depositor Protection Act, which would provide $10 million in additional deposit insurance coverage for noninterest-bearing transaction accounts at eligible banks and credit unions. The legislation serves to enhance financial stability.
“This essential reform strengthens regional and community banks’ central roles in the financial system of the future. A stronger and safer banking system will benefit all Americans,” Hagerty said in a statement.
The senators introduced the legislation to prevent a banking crisis such as when Silicon Valley Bank collapsed after a bank run. The lawmakers believe that by providing additional insurance for accounts primarily used by businesses it could provide additional
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