After senators backed off an ambitious expansion of deposit insurance amid pushback from big banks, smaller financial institutions that supported the policy are still urging lawmakers to advance the pared-back version.
“I really think that we have something that’s very workable and can ultimately stand up to a lot of the scrutiny that’s already been given,” Jim Ryan, who chairs the Mid-Size Bank Coalition of America, told Semafor.
“You’ll continue to see a considerable amount of consolidation in our industry” without it, he argued. “Doing nothing is not really a strategy, right?”
Treasury Department officials have signaled they’re on board, people familiar with the talks said — but the House still isn’t sold. House Financial Services Committee Republicans rolled out an array of proposals last week, including one that would direct regulators to simply conduct an analysis.
“This legislation is needed so that the House, Senate, and regulators can come together to find a number that works for all parties involved,” Rep. Marlin Stutzman, R-Ind., the sponsor of that bill, said.