The U.S. Senate Committee on Banking, Housing and Urban Affairs convened a hearing on deposit insurance and potential reforms, with Chairman Tim Scott framing deposit insurance as central to consumer confidence and urging that any changes be calibrated to strengthen the economy and financial stability. In his opening remarks, Scott cited the historical record that no insured depositor has lost money since deposit insurance was created in the 1930s and that more than 99 percent of deposit accounts are fully insured by the Federal Deposit Insurance Corporation (FDIC). He pointed to the 2023 failures of Silicon Valley Bank and other institutions as a recent stress test, noting that “extraordinary steps” were taken to cover large volumes of uninsured deposits and that uninsured balances shifted toward the largest banks. The remarks highlighted trade-offs around expanding coverage, including the potential costs to banks, small businesses, and consumers if changes are not properly designed, and positioned the hearing as a fact-finding exercise to inform the Committee’s evaluation of reform options.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-09-10
U.S. Senate Committee on Banking, Housing and Urban Affairs holds hearing on deposit insurance reform
The U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing on deposit insurance reforms, emphasizing its role in consumer confidence and economic stability. Chairman Tim Scott highlighted the historical success of the Federal Deposit Insurance Corporation (FDIC) and recent challenges, like the 2023 bank failures, as a basis for evaluating reform options. The hearing aimed to explore the trade-offs and potential impacts of expanding coverage.