It also takes into consideration the “economic conditions, the effects on the industry, and such other factors as the FDIC deems appropriate and relevant,” according to Gruenberg. Historically, they were fixed, but 2010’s Dodd-Frank act required that the agency needed to consider the size of a bank when setting rates. The fees that the FDIC assesses on banks tend to vary. He has also hinted that he would protect community banks from having to shell out too much money. FDIC Chairman Martin Gruenberg said this week that he plans to make the details of the latest assessment public in May. The law also gives the FDIC the authority to decide which banks shoulder the brunt of that assessment fee. But when a big, expensive event happens - like the FDIC making uninsured customers whole at Silicon Valley Bank - the agency is able to assess a special charge on the banking industry to recover the cost. That fund is typically supplied by quarterly payments from insured banks in the United States. What’s happening: The FDIC maintains a $128 billion deposit insurance fund to insure bank deposits and protect depositors. Ultimately, that means higher fees for bank customers and lower rates on their savings accounts. While regional and mid-sized banks are behind the recent turmoil, it appears that large banks may be footing the bill. Now, as the dust clears and the US banking system steadies, the FDIC needs to figure out where to send its invoice. It cost the Federal Deposit Insurance Corporation about $23 billion to clean up the mess that Silicon Valley Bank and Signature Bank left in the wake of their collapses earlier this month.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |