Tag: Federal Deposit Insurance Corporation

New Bank Fees to Cover Bailouts Could Be Passed on to Customers, Experts Say

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The Federal Deposit Insurance Corporation (FDIC) announced a proposal on Thursday to charge new fees to replenish funds spent bailing out Silicon Valley Bank (SVB) and Signature Bank depositors in March that will cost Americans, according to experts who spoke to the Daily Caller News Foundation.

Under the proposal announced at the FDIC Board of Directors Meeting, the regulator would charge special assessment fees to an estimated 113 banks, mostly those with over $50 billion in assets and none under $5 billion in assets. The banks will pass the costs on to their customers, according to economists who spoke to the DCNF.

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FDIC to Slap Banks with New Fees to Cover Bailout Losses: Report

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The Federal Deposit Insurance Corporation (FDIC) plans to release a proposal to replenish funds spent bailing out depositors of Silicon Valley Bank (SVB) and Signature Bank in March by charging fees to banks with over $10 billion in assets, according to people familiar with the matter who spoke to Bloomberg.

The smallest lenders with under $10 billion in assets would be exempt from these fees, according to the sources who spoke to Bloomberg. There were over 4,000 banks beneath that threshold at the end of 2022; however, there were 145 banks between $10 billion and $250 billion in assets, according to FDIC data.

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Commentary: Another California Bank Fails After $100 Billion Run on Deposits and Rising Interest Rates Forces First Republic into FDIC Receivership

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The Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation put the $229.1 billion California-based First Republic Bank into receivership today on May 1, while the FDIC also entered into a “purchase and assumption agreement” with JP Morgan-Chase Bank for the nation’s largest bank to assume First Republic’s assets as well as its $103.9 billion of deposits.

Another one bites the dust.

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Commentary: Connecting Dots from COVID to SVB and Beyond

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A collection of seemingly random crises can spell out a sinister “conspiracy theory” when you consider their connections and where they are leading. An overplayed plot? Perhaps, but how many so-called conspiracy theories have proven to be reality recently?

First, the world economy shut down with the COVID lockdown. Manufacturing stopped and capital construction projects were put on hold. No one was making anything, and consumers were buying very little. 

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Wisconsin Senator Johnson and Colleagues Urge White House to Reverse Major Climate Policies

Bradley Vasoli

Wisconsin Republican Senator Ron Johnson wrote jointly with several colleagues to President Joe Biden this week urging him to reverse major elements of his anti-fossil-fuel agenda. 

The letter from the senators takes issue with several actions the White House has taken to hinder investment in and use of oil, natural gas and coal in an effort the administration insists is important to lessening global warming. 

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GOP Senators Claim Biden Appointee Has Turned Consumer Protection Bureau into a ‘Lawless and Unaccountable’ Agency

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Republican senators claimed in a Monday letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra that he has returned the federal agency to its “lawless and unaccountable” Obama-era “roots.”

Led by Pennsylvania Sen. Pat Toomey, the 12 senators are taking aim at Chopra’s alleged “abuses of power” that are a “serious concern.” Chopra should “reverse course” and ensure the CFPB “stay[s] within the boundaries of law,” the senators wrote.

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Commentary: Congress Shouldn’t Let ‘Operation Choke Point’ Return to Tennessee

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On January 29, the U.S. Congress’ Committee on Financial Services will hold a hearing on whether the Office of the Comptroller of the Currency (OCC) is undermining the effectiveness of the Community Reinvestment Act (CRA), which helps low- and moderate-income communities secure loans. At this hearing, it is critical that Members of Congress speak out against the decisionmakers who have thus far ignored the renaissance of Operation Choke Point throughout the country. The resurrection of this practice, sometimes referred to as biased banking, violates both the CRA and official OCC policy, and, if not stopped soon, will have severe ramifications for Memphis and the State of Tennessee at large.

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