California representative speaks out on bank regulations and debt ceiling
WASHINGTON, D.C. (CBS, KYMA/KECY) - On Sunday's episode of Face the Nation, California Representative Ro Khanna tells Margaret Brennan that he is working on a bipartisan bill with Republican Sen. Marco Rubio to insure unsecured deposits. The measure would levy a fee on deposits amounts above $250,000.
Rep. Khanna said payroll companies are telling companies in his Silicon Valley district to move their deposits out of First Republic: “This is what a modern bank run looks like.”
Rep. Khanna drew contrast with progressive democrats who argue that large banks should not have the authority to buy up smaller ones, saying “The FDIC needs to look at the lowest cost alternative. that's their mandate, and they may need to work with banks and private capital to save First Republic.”
Rep. Khanna said that the back channel for coming to a consensus on the debt ceiling could be a sit-down between President Biden and Sen. Mitch McConnell. President Biden “knows he can't default.”
