The Main Street Depositor Protection Act expands federal deposit insurance to protect noninterest-bearing transaction accounts—such as basic checking accounts used for everyday payments—up to $10 million per depositor at banks and credit unions. Currently, these accounts are only insured up to the standard $250,000 limit. The bill excludes the largest systemically important banks and foreign bank branches from offering this expanded coverage to prevent excessive concentration of risk. Community banks and credit unions with assets of $10 billion or less will not face additional insurance assessments during a 10-year transition period, with regulators required to publish a gradual implementation plan within one year of the law's enactment. The regulators can issue rules to prevent institutions from circumventing the protections by converting accounts or using workarounds.
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