Lawmakers Want FDIC to Raise $250,000 Lid on Deposit Insurance amid SVB Collapse

Prominent lawmakers are calling for the Federal Deposit Insurance Corporation (FDIC) to raise the ceiling on its $250,000 insurance limit following the collapse of Silicon Valley Bank.

This comes after regulators shut down Silicon Valley Bank earlier in the month. The FDIC took control of the bank and said they would protect insured deposits, which means they would protect anything up to the $250,000 limit. Shortly thereafter, the government announced that they would be taking “decisive actions to protect the U.S. economy” by making deposits above the FDIC’s $250,000 limit available.

However, weeks after the collapse, lawmakers wanted to raise the limit again after it was permanently raised to $250,000 from $100,000 by the 2008 Dodd-Frank law following a temporary hike during the 2008 financial crisis.

Sen. Elizabeth Warren told CBS’s Face the Nation on Sunday that raising the limit has “got to be on the table right now” with the chaos in the banking sector.