![]() Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Following that, the FDIC expects the rule to be finalized and take effect at the beginning of next year with the first quarterly payment due on June 28, 2024. ![]() ![]() The proposed rule won’t go into effect immediately. The FDIC had initially estimated a bigger hit to the DIF after the bank failures, but it revised the losses downward after receiving “higher anticipated recoveries” from selling off the banks’ assets. Banks with more than $50 billion in total assets would contribute 95% of fees to replenish the DIF, according to the FDIC’s estimates. The FDIC estimates that 113 banks would be subject to the proposed fees. A bank that had $10 billion in uninsured deposits would pay $6.25 million a year. The nation’s largest bank, JPMorgan Chase, would pay around $1.5 billion in additional fees given the bank had around $1.2 trillion in uninsured deposits at the end of 2022, according to FDIC records. That’s assuming that, for accounting purposes banks, record the entire two-year expense over the first quarter a payment is due. The FDIC estimates that banks subjected to the proposed rule would take see a 17.5% reduction in income over the span of one quarter. The proposed rule would charge banks 0.125% annually for two years on all their uninsured deposits as of the end of last year after deducting $5 billion. The FDIC is focusing on these banks since they benefited the most from the FDIC’s unprecedented actions in the wake of the collapse of SVB and Signature Bank. To recover the $15.8 billion, the FDIC is proposing levying higher fees on banks that have more than $5 billion in uninsured deposits. In total, that depleted $15.8 billion from the FDIC’s Depositor Insurance Fund (DIF).īanks that are FDIC-insured pay fees to the fund in exchange for coverage in the event that they fail. This comes after the government insured depositors’ money that exceeded the $250,000 insurance cap at Silicon Valley Bank and Signature Bank to stem the panic that ensued from their failures. ![]() The Federal Deposit Insurance Corporation’s board of directors approved a proposal to raise the fees banks pay to have depositors’ money insured. ![]()
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