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 is the FDIC's rationale for large banks contributing more to the fund?

What are the potential political implications of the FDIC's proposal?