Following recent news of the Federal Deposit Insurance Corporation (FDIC) bailout of two failed banks, U.S. Senators Josh Hawley (R-Mo.) and Mike Braun (R-Ind.) introduced the Protecting Consumers from Bailouts Act to protect consumers from new fees and to force the big banks to face up to their mistakes. The Biden administration announced that they will impose “special assessment” fees on banks across the country to pay for the Silicon Valley Bank bailout.
“Consumers and community banks should not have to shoulder the cost of fiscal irresponsibility by big financial institutions,” said Senator Hawley. “The Biden administration wants to take money from the American taxpayer and local banks through new fees so they can use it to bail out California billionaires. We must protect hardworking Americans and force the big banks to pay for their own mistakes.”
“Community banks and their customers in Indiana should not be on the hook for bailing out Silicon Valley Bank and Signature Bank for their risky financial decisions. We need to make sure responsible community banks and regular Americans are not footing the bill for President Biden’s bank bailout,” said Senator Braun.
The Protecting Consumers from Bailouts Act would:
- Bar banks from passing to their customers the cost of any “special assessment” by the FDIC to bail out Silicon Valley Bank or Signature Bank
- Prevent the FDIC from levying “special assessments” on community banks to pay for bailing out the uninsured depositors of failing banks
- Allow the FDIC to claw back bonuses paid to executives of failed banks
Read the full bill text here.