FDIC asked by medium-sized banks to insure all deposits for two years


A coalition of mid-sized U.S. banks asked federal regulators to extend FDIC insurance to all deposits for the next two years, arguing the guarantee is needed to avoid a broader run on the banks.

“Doing so would immediately stop the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce the chances of more bank failures,” the Mid-Size Bank Coalition of America said in a letter to regulators seen by Bloomberg News.

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