Will establish an emergency program allowing the Treasury to temporarily provide unlimited deposit insurance on transaction accounts during severe financial stress.

the Emergency Transaction Account Guarantee (E-TAG) Act. Barr’s proposal establishes an emergency program allowing the U.S. Department of the Treasury to temporarily provide unlimited deposit insurance on transaction accounts during periods of severe financial stress.

Barr introduced legislation to create an emergency Treasury program for temporary unlimited deposit insurance on transaction accounts during severe financial stress.

Barr Introduces E-TAG Act to Protect Bank Depositors During Financial Crises | Press Releases | Congressman Andy Barr
primary · press_release · model gpt-5.4-mini

FDIC guidance says deposit insurance covers deposits at FDIC-insured banks and insures them to at least $250,000 per depositor, per ownership category. It also says coverage only applies to deposits at FDIC-insured banks, not an unlimited Treasury-backed guarantee.

Current FDIC guidance still shows the standard capped system, not a standing unlimited-insurance program for transaction accounts.

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Understanding Deposit Insurance | FDIC.gov
secondary · model gpt-5.4-mini · confidence 96%

The Treasury statement said Secretary Yellen approved actions that fully protected all depositors at Silicon Valley Bank, with access to all money starting March 13, and announced a similar systemic-risk exception for Signature Bank.

Officials used an emergency, case-by-case systemic-risk action during the 2023 banking crisis, but that is not the same as creating a standing program Treasury can use generally.

partial unknown A for effort

Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC | U.S. Department of the Treasury
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FDIC said it transferred all deposits, both insured and uninsured, into a bridge bank under the systemic-risk exception and that all depositors would be made whole; it also said losses would be recovered through a special assessment on banks.

This confirms a one-off emergency resolution for SVB, not an established general-purpose unlimited deposit-insurance program for transaction accounts.

partial unknown A for effort

FDIC Acts to Protect All Depositors of the former Silicon Valley Bank, Santa Clara, California | FDIC.gov
secondary · model gpt-5.4-mini · confidence 95%

Axios reported that Yellen said blanket deposit insurance for all deposits had not been seriously considered, while Powell said regulators had tools for systemic-risk situations.

This is explicit contrary evidence that a standing blanket-unlimited deposit program was not being pursued at that time.

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D.C. tries to have it both ways on bank deposit insurance
secondary · model gpt-5.4-mini · confidence 88%