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FDIC set to propose assessment on larger banks to replenish insurance fund - report

May 04, 2023 5:18 PM ETBy: Liz Kiesche, SA News Editor7 Comments
FDIC United States Federal Deposit Insurance Corporation sign on wall of building with logo on 17th street in evening night, entrance doors


  • The Federal Deposit Insurance Corp. plans to release as soon as next week a proposal to replenish its Deposit Insurance Fund, that was reduced by the failures of Silicon Valley Bank and Signature Bank, according to a media report on Thursday.

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Comments (7)

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What Fed is saying this will be paid for by shareholders of larger banks. If you own bank stock, it or etf with bank your paying for it. We don’t know how many more fail and or what total bill will be. There are other ways to fix.
Chancer profile picture
Big banks got huge benefit when they were bailed out in 2008.
Now, they have the opportunity to give back.
There is nothing fair in politics.
Congressional politicians receive huge campaign contributions from the big banks. Wondering if this proposal will actually occur.
Easy for banks to program computers to warn customers they are over FDIC insurance limit, like (on monthly bank statement):
"Warning. Hazardous to your wealth. Over FDIC $250,000 insurance limit."
@Chancer That is absolutely false!! The "bailout" in 2008 netted the US Treasury $30 Billion profit plus complete return of the entire TARP money forced on the large banks! Every dollar was paid plus a huge gain from warrants and interest charged. Quit claiming otherwise!!!!
So some of the smaller banks have been the problematic ones, doing a terrible job by buying long-term treasuries and mortgages at historically low yields to create a dangerous duration mismatch on their balance sheets. And now the FDIC tells the larger banks they have to pay for the smaller bank losses. How is this fair?
jsantmyer profile picture
@Whiteshell have you looked at the recent deal where JPM purchased the assets of 1st Republic but were not obligated to pick up the debt or preferred stock? Seems like a windfall to me with small investors as well as large picking up the tab for the left behind debt and PS. THAT IS THE REASON WHY IT IS FAIR!!! Meanwhile Competition is on the decline in the banking industry…
As Enstein said, “Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.”
So we buried the small banks, now let's drown the bigger ones while the FED keeps raising rates...
Chase ended up making $80 Billion on it's purchase of Washington Mutual in 2009 and I'm sure Chase will do well on it's recent take over of 1st Republic Bank.
Gooooo Chase!!!!!!!!
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