The FDIC has the authority to require large banks to fill a $23 billion deficit
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The US Federal Deposit Insurance Corporation (FDIC) is expected to incur losses of approximately $23 billion this month due to the bankruptcy of regional banks, which may prompt larger banks to take on a larger share of expenses than usual, according to Business Insider.
In May, the FDIC plans to offer a special industry assessment to replenish its deposit insurance fund, which suffered due to the collapse of Silicon Valley Bank and Signature Bank.
The FDIC is under political pressure to fill the commission’s coffers with funds from smaller banks, but the commission has the freedom to determine how these fees are established. The special assessment may apply to banking giants such as JPMorgan Chase, Bank of America (NYSE:BAC), and Wells Fargo (NYSE:WFC).
FDIC, the US Treasury Department, and the Federal Reserve System have stated that all deposits in SVB and Signature Bank will be fully protected. FDIC typically guarantees coverage of deposits up to $250,000.
