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A coalition of midsize U.S. banks is calling on the government to insure all deposits for the next two years, in the wake of Silicon Valley Bank's emergency rescue that insured all of the firm's deposits regardless of size.
Driving the news: The Mid-Size Bank Coalition of America sent a letter to regulators arguing that a temporary suspension of the FDIC's deposit insurance limit is necessary to ensure that smaller banks can navigate the current banking crisis, Bloomberg reported.
Why it matters: After the sudden collapse of Silicon Valley Bank and New York's Signature Bank, the spotlight is on banks that may also be vulnerable to a sudden outflow of deposits.
The recipients: The MBCA sent its letter to Treasury Secretary Janet Yellen, the FDIC, the comptroller of the currency and the Fed, according to Bloomberg.
What we're watching: Whether Washington answers the growing clamor to broaden FDIC deposit protection. California Democratic Rep. Ro Khanna is preparing to introduce legislation that removes the agency's coverage cap, Dealbook reported on Saturday.