Bill Overview
Title: Consumer Transaction Account Protection Act of 2022
Description: This bill specifies that consumer transaction account deposits of an insured depository institution are not funds obtained through a deposit broker. In general, current law prohibits an insured depository institution that is not well capitalized from accepting for deposit funds obtained through a deposit broker.
Sponsors: Sen. Moran, Jerry [R-KS]
Target Audience
Population: Consumer transaction account holders worldwide
Estimated Size: 250000000
- The bill affects consumer transaction account deposits, which are commonly used by people to store and manage cash for daily expenses, payments, and savings.
- This includes consumers who have checking accounts, savings accounts, and similar transaction accounts at banks.
- The bill impacts insured depository institutions, which includes banks and credit unions across the country.
- Consumers who bank with smaller or less well-capitalized institutions might see the most impact, as it affects these banks' ability to accept deposits.
- All individuals with financial accounts in the banking system could be impacted by changes in regulations and protections.
Reasoning
- The policy impacts consumer transaction accounts, so individuals with savings and checking accounts might perceive the risks associated with their depository institutions differently.
- Well-capitalized banks are unlikely to be affected significantly, but banks not well capitalized could impact consumer confidence, perhaps influencing people's perceptions of security regarding their deposits.
- The cost to implement this policy is mainly tied to administrative and regulatory oversight rather than direct consumer outreach, meaning individuals might not notice direct changes but could perceive indirect risk adjustments.
- Some consumers with lower financial literacy may not understand or notice the implications of the policy, possibly resulting in unchanged wellbeing due to lack of awareness.
Simulated Interviews
Software Engineer (Boston, MA)
Age: 35 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- I don't think this policy will really affect me because I trust my current bank, which is pretty big and seems stable.
- As long as my deposits are protected, I'm not too worried about technical changes to how they manage them.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Small Business Owner (Fargo, ND)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I feel a bit uncertain because my bank isn't one of the large ones.
- I'm hoping this policy ensures more stability in smaller institutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Retired (Austin, TX)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm always concerned about protecting my savings, so any policy that adds layers of protection is good.
- I need to know my money is secure, especially with smaller banks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Freelancer (San Francisco, CA)
Age: 26 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- I don't really feel impacted by these changes—I mostly care that I can access my funds easily through apps.
- Most of my concerns revolve around tech and efficiency, not the underlying policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Bank Teller (Memphis, TN)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- If our bank can attract more deposits without stricter capital requirements, it could help, but I'm cautious.
- I hope this policy allows us to serve our community better without risking my job.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
School Administrator (Miami, FL)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I'm not too concerned with policy changes as long as they don't disrupt my daily banking activities.
- Having a stable depository setup is what matters most.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Insurance Agent (Omaha, NE)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- I like the idea of more protections; it might convince me to consolidate my accounts under a single, trustworthy bank.
- Policies like this make me feel more secure in my financial choices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Retired (Seattle, WA)
Age: 65 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- FDIC protection has always been something I value, so any reinforcement of that is a plus.
- I want to feel secure that my retirement funds are safe.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 5 |
College Student (Columbus, OH)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- I'm still new to all this, so as long as my debit card works, I'm happy!
- These policies sound important, but they're not something I think about currently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Construction Worker (Raleigh, NC)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- Anything that keeps my money safe is vital, but lately, I don't see much affecting my daily life.
- I guess any protection is better than none, but banks seem the same to me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $20000000 (Low: $10000000, High: $30000000)
Year 2: $19000000 (Low: $9000000, High: $29000000)
Year 3: $18000000 (Low: $8000000, High: $28000000)
Year 5: $15000000 (Low: $5000000, High: $25000000)
Year 10: $10000000 (Low: $0, High: $20000000)
Year 100: $5000000 (Low: $0, High: $15000000)
Key Considerations
- The bill may alter how smaller, less well-capitalized banks manage their deposits, impacting their risk profiles.
- There could be concerns over moral hazard if regulatory standards for acceptance of brokered deposits are relaxed too much.
- Political and public reactions might center on the potential risks of focusing on regulatory leniency rather than stringent financial oversight.