In the aftermath of two major banks in the United States defaulting and were forced to close, one US Representative from Iowa is reassuring everyone that not all banks are the same.

Iowa’s Third Congressional District Representative Zach Nunn says Silicon Valley Bank in California and New York-based bank Signature Bank caused $22 billion to bleed out from the Federal Deposit Insurance Corporation (FDIC) funds. Nunn points out Silicon Valley Bank had 96-percent of its depositors that weren’t FDIC insured, unlike in rural Iowa, where less than seven-percent of depositors are not FDIC insured.

“Our community banks have done herculean work to be able to ensure that a first-time home buyer has the loan that they need at the time they need it, or when your son or daughter is getting that first car and they can get that car loan, or even if you just want to look at your long term savings plan, you’ve got a local investor there who is with you and it’s called, ‘Your community bank or credit union.’”.   

Nunn serves on the US House Financial Services Committee and talks about his support for smaller banks across the country, including in Iowa.

“So my role on financial services is to be a champion for the Midwestern, Main Street, community lenders, that they get everything that they’re owed. And that means making sure taxpayers are not bailing out big banks and community lenders are not on the hook for bad decisions by big banks.”

Nunn says the committee has passed several policies to help small banks avoid having to do that and put these assessments back onto the big banks to pay.