America’s biggest banks are being hit with huge hikes in Federal Deposit Insurance Corporation (FDIC) after several recent banking failures.
The FDIC said big banks will bear billions of dollars in extra fees to replenish a deposit insurance fund used to bail out banks in March.
The recent collapse of Silicon Valley Bank (SVB) and Signature Bank impacted the deposit insurance fund (DIF) for a total of $15.8 billion.
The fund took the brunt because the government insured depositors’ money that exceeded the $250,000 insurance cap to stem the panic from these banks’ failures.Around 113 banks are expected to pay the fee, the agency said.However, while the fee applies to all banks, in practice lenders with more than $50 billion in assets would be responsible for over 95 percent of the replenishment.Banks with less than $5 billion in assets would not pay any fee.Under the law, the FDIC has discretion in designing […]
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