FDIC Pressed to Exempt Smaller Banks From Paying for Rescues at SVB, Signature
- Regulator to charge special assessment after paying depositors
- FDIC faces $20 billion hit for SVB, $2.5 billion for Signature
FDIC headquarters in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The Federal Deposit Insurance Corp. is coming under pressure from lawmakers to exempt community banks from the special fee it’s preparing to charge US lenders to account for its rescue of uninsured depositors at two failed lenders.
In hearings at Congress Tuesday and Wednesday, FDIC Chair Martin Gruenberg repeatedly faced questions on the coming assessment. The deposit insurance fund will suffer an estimated $20 billion hit linked to the demise of Silicon Valley Bank, and a $2.5 billion blow from Signature Bank, according to the agency.