Big
bank
CEOs
will
likely
convey
deposits
and
earnings
are
stable
to
lawmakers
on
Wednesday,
according
to
a
major
financial
services
executive.
Thomas
Michaud,
CEO
of
Stifel
company
Keefe,
Bruyette
&
Woods,
thinks
the
hearing
before
the
Senate
Banking
Committee
will
successfully
provide
assurance
to
Washington
and
Wall
Street.
Banking
chiefs
slated
to
speak
at
the
“Annual
Oversight
of
Wall
Street
Firms”
hearing
include
JPMorgan
CEO
Jamie
Dimon
and
Goldman
Sachs
CEO
David
Solomon.
“The
crisis
of
the
spring
where
we
had
three
of
the
four
largest
failures
in
history
is
behind
us,”
Michaud
said
on
CNBC’s
”
Fast
Money
”
on
Tuesday.
He’s
referring
to
Silicon
Valley
Bank
,
Signature
Bank
and
First
Republic
—
the
latter
of
which
was
the
nation’s
biggest
bank
failure
since
the
2008
financial
crisis.
Michaud,
who
testified
before
Congress
in
May
on
the
bank
failures,
hopes
Wednesday’s
hearing
re-addresses
the
call
for
changes
to
prevent
bank
runs
from
pushing
other
financial
institutions
over
the
edge.
“One
way
to
fix
it
is
deposit
insurance
reform,”
he
said.
“The
targeted
approach
to
change
deposit
insurance
to
reduce
the
‘too
big
to
fail’
thinking,
so
depositors
don’t
run
like
that.
That
is
what
we
need,
and
that
effort
has
stalled
in
Congress.”
He
thinks
action
is
needed
to
keep
mid-sized
banks
competitive
with
the
big
banks
—
starting
with
lifting
Federal
Deposit
Insurance
Corp
coverage
limits
for
small
businesses.
Currently,
the
FDIC
covers
$250,000
per
depositor,
per
insured
bank,
per
ownership
category
—
an
amount
that
is
likely
inadequate
for
small
businesses
.
“If
deposit
insurance
reform
in
my
opinion
doesn’t
happen,
there’s
going
to
be
tremendous
pressure
on
those
[mid-size]
banks
to
consolidate,”
Michaud
said.
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