Senior House Republican says Biden administration should temporarily guarantee all bank deposits nationwide

A top House Republican called for the federal government to temporarily insure all bank deposits at all banks around the country.

Congressman Blaine Luetkemeyer (R-MO) said Tuesday that the government should back up all deposits in banks for the time being in order to shore up confidence in the financial system and avoid bank runs. His comments come amidst controversy over the government’s decision to fully insure the deposits of Silicon Valley Bank after it collapsed last week.

“If you don’t do this, there’s going to be a run on your smaller banks,” Luetkemeyer told POLITICO. “Everyone’s going to take their money out and run to the JPMorgan’s and these too-big-to-fail banks, and they’re going to get bigger and everybody else is going to get smaller and weaker, and it’s going really be bad for our system.”

Luetkemeyer, a former banker and a member of the House Financial Services Committee, is one of a few House Republicans taking the Biden administration’s line…