US officials are studying how to temporarily expand the protection offered to banking customers by Federal Deposit Insurance Corp (FDIC) to include all deposits, going beyond the current $250,000 cap, Bloomberg reported. Like the collapsed Silicon Valley Bank (SVB), a large proportion of First Republic’s customers hold more than the $250,000 amount guaranteed by federal insurance.

However, the move may face political roadblocks. Hardline Republicans in the House of Representatives on Monday vowed to oppose any cover extension, the Guardian reported. The Republican House Freedom Caucus said in a statement: “Any universal guarantee on all bank deposits, whether implicit or explicit, enshrines a dangerous precedent that simply encourages future irresponsible behavior to be paid for by those not involved who followed the rules.”

First Republic’s woes follow the collapse of SVB and New York-based Signature. Over the weekend Credit Suisse became the largest institution so far to be embroiled in the upheaval when the Swiss government forced the troubled bank into a cut-price takeover by rival UBS. First Republic has struggled to reassure depositors that it will not suffer the same fate as SVB and Signature.

Last week, the bank increased borrowings from the US Federal Reserve and then suspended its common stock dividend despite holding about $213 billion in assets and $176 billion in deposits, the Guardian reported. Efforts to provide new support to First Republic are being led by the JP Morgan CEO, Jamie Dimon, the Wall Street Journal reported.