Big banks may cover 95% of the cost to refill the $16 billion hole blown in the FDIC's deposit insurance fund by bank failures
The FDIC proposed a fee on banks to refill the $16 billion hole created in its insurance fund from covering depositors at failed lenders.approved by the FDIC's board of directors and outlined by the agency on Thursday called for a special assessment on 113 banks, with bank behemoths picking up the bulk of the cost.
The country's biggest bank, JPMorgan Chase, had assets of $3.7 trillion as of March 31. Bank of America, Citigroup and Wells Fargo are alsoThe regulator aims to impose a fee at an annual rate of 0.125% to uninsured deposits exceeding $5 billion. Payments over eight quarters would start in the first quarter of 2024. The fee will be based on a bank's amount of uninsured deposits at the end of 2022.
The FDIC's insurance fund was depleted of $15.8 billion to cover depositors at Silicon Valley Bank and Signature Bank when those banks collapsed and were seized in March. "Community banks should not have to bear any financial responsibility for losses to the Deposit Insurance Fund caused by the miscalculations and speculative practices of large financial institutions," Rebeca Romero Rainey, president and CEO of Independent Community Bankers of America, said in a statement.
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