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119-hr-8087119th CongressWALLET

Main Street Depositor Protection Act

Sponsored By: Representative Lucas, Frank D. [R-OK-3]

Introduced

Summary

Extended insurance for noninterest-bearing transaction accounts. The bill creates a separate layer of federal deposit insurance for accounts that do not earn interest and adds it on top of the existing standard insurance limit.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

More insurance for transaction accounts

This bill would require the FDIC to insure money in noninterest-bearing transaction accounts in addition to the standard limit. The FDIC must issue a rule within 6 months setting the extra insured amount at least equal to the current standard limit and no more than $5,000,000. The NCUA would insure the same kind of accounts at credit unions up to the FDIC-set maximum. The law would define which accounts qualify and let the agencies make rules to stop evasion and limit coverage to the defined accounts.

Excluded banks lose new coverage

If enacted, the expanded insurance for noninterest transaction accounts would not apply to accounts at certain institutions. The bill would exclude insured depository institution subsidiaries of global systemically important bank holding companies and insured branches of foreign banks from the new coverage. This exclusion would not change their existing standard deposit insurance limits.

Small banks shielded from transition fees

During the 10-year phase-in, banks with $10 billion or less in assets would not have to pay certain special assessments tied to the new transaction-account insurance. The bill would also bar assessment increases charged only to offset reserve impacts from the expanded coverage for those small banks. The protections last through the 10-year transition period.

FDIC cap can't change without Congress

The bill would say that once the FDIC sets the extra insured amount for noninterest transaction accounts, only Congress could change or repeal that amount. That gives depositors certainty about the level of protection. It also limits the FDIC's ability to adjust insurance levels without new legislation.

Sponsors & CoSponsors

Sponsor

Lucas, Frank D. [R-OK-3]

OK • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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