Chinese 100, 50, 20, 10 and 5 yuan bills and Russian 1,000 and 100 ruble bills - Sputnik International, 1920
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US Banks With Over $50Bln in Assets to Help Pay for Recent Bank Failures - FDIC

© Flickr / afagenBank of America, Washington, DC
Bank of America, Washington, DC - Sputnik International, 1920, 11.05.2023
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WASHINGTON (Sputnik) - US banks with more than $50 billion in assets will help the Federal Deposit Insurance Corporation (FDIC) cover its $16 billion bill for addressing recent US bank failures, a statement from the regulator said Thursday.
A new "special assessment" fee of 0.125% would be applied to the uninsured deposits of banks in excess of $5 billion, based on the amount of uninsured deposits any particular bank held at the end of 2022, the FDIC said.
"Banking organizations with total assets over $50 billion would pay more than 95 percent of the special assessment. No banking organizations with total assets under $5 billion would be subject to the special assessment," the statement added.
A property managment representative gestures while asking reporters to clear the entrance area to Silicon Valley Bank in Santa Clara, Calif. - Sputnik International, 1920, 09.05.2023
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According to the structure of the proposed fee, affected banks would pay over eight quarters beginning in June 2024. But the schedule could also be adjusted as the estimated losses to the insurance fund change, the FDIC said.
The extended timeline will minimize the impact on bank liquidity and is expected to have a negligible impact on capital, US media reports said.
A spate of US banks have landed in trouble over the past two months after their customers abruptly withdrew their deposits, requiring either government intervention to prop them up or an outright sale to a stronger banking entity.
FILE - A television screen displaying financial news, including the stock price of First Republic Bank, is seen inside one of the bank's branches in New York's Financial District, on March 16, 2023. Customers of the bank pulled more than $100 billion in deposits out of the bank during the March crisis, as fears swirled that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank. - Sputnik International, 1920, 04.05.2023
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Last week, San Francisco-based First Republic was acquired by JPMorgan Chase, the largest US banking group. Prior to that, Silicon Valley Bank and Signature Bank were rescued by the FDIC in March.
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