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Deposit Insurance Fund

All articles tagged with #deposit insurance fund

business2 years ago•5 min saved

Bank Earnings Surge: JPMorgan Chase, Bank of America, and Wells Fargo Lead the Way

JPMorgan Chase, Bank of America, and Wells Fargo reported strong quarterly profits despite having to pay billions to replenish a deposit insurance fund, with high interest rates fueling their earnings. Citigroup, in the midst of a global restructuring, reported a net loss due to one-time expenses and revealed plans to cut around 10% of its workforce. The banks' profits exceeded analysts' expectations, but JPMorgan's CEO warned of potential economic challenges ahead, while Bank of America and Wells Fargo remained optimistic about the U.S. economy despite anticipating potential drops in net interest income due to expected rate cuts.

via The New York Times|

#banking #business #deposit-insurance-fund

finance2 years ago•2 min saved

FDIC proposes big banks pay for SVB and Signature failures.

The Federal Deposit Insurance Corporation (FDIC) has proposed that banks with more than $5 billion in assets should help pay for the March failures of Silicon Valley Bank and Signature Bank, sparing small community institutions from footing part of the bill. The FDIC estimates that it will cost $15.8 billion to protect all depositors at those two institutions who were above the FDIC's $250,000-per account insurance level. The proposal asks the largest banks – those with total assets over $50 billion — to pay more than 95% of the special assessment.

via Yahoo Finance|

#banks #deposit-insurance-fund #fdic

finance2 years ago•5 min saved

FDIC seeks big bank contributions to cover $23B in failed bank costs.

The FDIC is considering imposing a special assessment on the banking industry to shore up its $128 billion deposit insurance fund, which has been hit hard by recent bank failures. Officials are reportedly looking to shift an outsize portion of the expense toward much larger institutions, such as JPMorgan Chase, Bank of America, and Wells Fargo, to limit the strain on community lenders. Lawmakers have pressed regulators to spare small banks from having to pay for the intervention at Silicon Valley Bank and Signature Bank, which saved wealthy customers whose balances far exceeded the FDIC's typical $250,000 limit on coverage.

via Yahoo Finance|

#bank-failures #big-banks #deposit-insurance-fund

finance2 years ago•2 min saved

SVB's Collapse Raises Concerns Over Equity-Based Compensation and Bank Stability.

The 10 largest deposit accounts at Silicon Valley Bank held a combined $13.3 billion, according to the chair of the Federal Deposit Insurance Corporation (FDIC), who estimates that the FDIC's $125 billion Deposit Insurance Fund took a $20 billion hit as a result of the SVB intervention. The FDIC's swift action in the wake of SVB's failure has been criticized as a bailout for the wealthy and well-connected, given SVB's role as a major lender to venture capital and tech startups.

via Common Dreams|

#bailout #deposit-insurance-fund #fdic

finance2 years ago•4 min saved

The Cost of Bank Bailouts: Who Pays?

The Biden administration has guaranteed uninsured deposits at two failed banks, Silicon Valley Bank and Signature Bank, to prevent a broadening panic. Taxpayers will not bear any direct cost for the failure of these banks, but other banks may have to help defray the cost of covering uninsured deposits. The Federal Deposit Insurance Corp. will likely cover most of the cost of guaranteeing all deposits at both banks, and any costs beyond that would be paid for out of the FDIC's deposit insurance fund. The fund is maintained with fees paid by participating banks, and if necessary, it will be replenished by a “special assessment” on banks.

via ABC News|

#bank-failures #biden-administration #deposit-insurance-fund

finance2 years ago•5 min saved

Navigating Banking and Economic Challenges in Biden's First Year.

The Biden administration has guaranteed that all depositors at failed banks Silicon Valley Bank and Signature Bank will have their funds available to them immediately, extending beyond the FDIC fund insurance that promises depositors' funds up to $250,000 will be covered. The Deposit Insurance Fund (DIF) exists to repay insured depositors when a financial institution fails, and by the end of Q4 2022, the DIF had $128 billion in its coffers, which is "fully sufficient" to cover SVB and Signature Bank customers, according to a senior Treasury Department official.

via CBS News|

#banking-system #deposit-insurance-fund #fdic