Big Banks Face Billions in Extra FDIC Fees After SVB Failure

The FDIC has proposed that large banks, those with over $50 billion in assets, pay 95% of the fees needed to replenish a fund drained by recent regional bank failures. This special assessment stems from the decision to insure all deposits at two failed banks, costing $15.8 billion. The FDIC argues that large banks benefited most from this decision and should contribute more. Payments will be made in eight quarterly installments starting in 2024, affecting 113 banks. The proposal has sparked political debate, especially regarding the decision to insure deposits beyond the usual $250,000 limit. The FDIC will take public comments for 60 days before finalizing the plan.

What percentage of the fees will banks with more than $50 billion in assets be responsible for?

• 100%

• 75%

• 50%

• 95%

What was the extraordinary decision made by the FDIC in March?

• To increase interest rates

• To insure all deposits at two failed banks

• To close more regional banks

• To lower the deposit insurance limit

How much did the decision to insure all deposits cost the FDIC?

• $25 billion

• $20 billion

• $15.8 billion

• $10 billion

What is one of the political debates surrounding the FDIC's proposal?

• Whether to increase the deposit insurance limit

• Whether to close more banks

• Whether to increase interest rates

• Whether to decrease bank fees

How long will the FDIC take comments on its plan before finalizing it?

• 30 days

• 90 days

• 45 days

• 60 days