H.R. 10821: To amend the Federal Deposit Insurance Act to make changes to the Standard Maximum Deposit Insurance Amount, and for other purposes.

This bill would change the limit on how much money is insured in bank deposits and would require a study of whether that limit should be set differently in the future.

Deposit insurance limit increase

Under current law, the standard federal deposit insurance limit is generally $250,000 per depositor, per insured bank, for each ownership category. This bill would raise that standard maximum deposit insurance amount to $750,000.

That means if someone has eligible deposits at a bank that fails, the federal deposit insurance system would cover up to $750,000 instead of $250,000, subject to the usual rules about account ownership categories and insured institutions.

Annual inflation adjustment

The bill would also require the deposit insurance limit to be adjusted every year based on changes in the Consumer Price Index for All Urban Consumers (CPI-U), which is a measure of inflation.

• The Federal Deposit Insurance Corporation (FDIC) would make the adjustment each January 1.
• The adjustment would be based on the most recent 12-month increase in CPI-U data available.
• The amount would be rounded down to the nearest $10,000.

In practical terms, this would make the deposit insurance cap rise over time as prices increase.

When it would take effect

The new deposit insurance rules would take effect 180 days after the bill is enacted.

Required study and report

The bill would direct the FDIC and the National Credit Union Administration (NCUA) to jointly study the appropriate level for the standard deposit insurance amount and report their findings to Congress within one year of enactment.

In preparing the report, they would have to consider:

• the amount of assets held by institutions,
• how deposit balances are distributed across institutions,
• the share of deposits that are insured versus uninsured, and
• the effect on the Deposit Insurance Fund.

The report would also need to cover:

• tools and resources needed to implement the chosen insurance amount,
• possible benefits of that amount, and
• operational or administrative procedures needed to carry it out, including procedures for the annual inflation adjustment.

Relevant Companies

• JPM — JPMorgan Chase, a major bank that could be affected by changes in deposit insurance coverage and related deposit flows.
• BAC — Bank of America, a large deposit-taking bank that could be affected by changes in insured deposit limits.
• WFC — Wells Fargo, a large bank that could be affected by changes in deposit insurance rules.
• C — Citigroup, a major banking institution that could be affected by deposit insurance changes.
• USB — U.S. Bancorp, a large U.S. bank that could be affected by changes in insured deposit limits.
• TFC — Truist Financial, a bank that could be directly affected by shifts in insured deposits and customer deposit behavior.
• PNC — PNC Financial Services, a large bank that could be affected by the bill’s deposit insurance changes.
• CFG — Citizens Financial Group, a deposit-taking bank that could be affected by the new insurance cap.
• BBT — Truist’s predecessor ticker is no longer active; no direct current impact noted under this ticker.

  This is an AI-generated summary of the bill text. There may be mistakes.