The update: On November 16, the Financial Deposit Insurance Corporation (FDIC) approved key aspects of its proposal for a “special assessment” fee on US financial institutions (FIs) to replenish the deposit insurance fund, which was drained of $16.3 billion earlier this year by the collapse of Silicon Valley Bank (SVB) and other lenders.
What’s the final plan? The FDIC decided major FIs will foot the bill for the uninsured depositors whose funds were tied up in the March banking crisis.
Reactions from FIs: Four banks will cover a hefty portion of the fees, and their representatives have expressed disappointment in the decision.
Key takeaways: The FDIC’s decision to go above and beyond to protect uninsured deposits set a precedent that’s left big banks carrying the responsibility for depositors’ financial health.
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