The Senate spent last week kicking the tires on deposit insurance, the system that guarantees the funds that U.S. consumers park in regulated banks.
One thing struck us: The biggest banks have become a punching bag for this policy, as lawmakers mocked that “Too Big to Fail” institutions wouldn’t want to pay for higher insurance premiums because they assume they will get a government bailout again if there’s another financial crisis.
Senators on the Banking Committee told us that changing the system is a long time coming.
“Quite honestly, it’s in their best interest to restore that ecosystem anyway,” Sen. Thom Tillis (R-N.C.) told us, referring to large banks.
