TPA & The Cato Institute Brief Congress: The Hidden Risks of Raising the FDIC Cap

At a recent Capitol Hill briefing hosted by the Cato Institute, TPA’s Dan Savickas joined Grover Norquist, Norbert Michel, David Burton, & Tom Kingsley to discuss the growing push to raise the FDIC deposit insurance cap from $250,000 to as high as $10 million. The group highlighted how such a move could increase risk in the financial system & shift massive new costs onto consumers. While some claim taxpayers would be shielded from the impact, TPA’s analysis finds the cost could exceed $40 billion—money that would ultimately be paid by taxpayers, not banks.

Such a move would also increase moral hazard, creating new risks for the American economy. Using the federal government as an increasingly large backstop to reckless behavior will not increase trust in America’s financial institutions. TPA has written extensively on that issue HERE.

Watch the full panel below: