FDIC Proposes Major Banks Pay Billions to Restore Failure Fund

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The FDIC proposed that banks with more than $5 billion in assets pay a 0.125% “special assessment” fee on uninsured deposits, with the top 14 US lenders expected to cover 95% of the cost.

This fee would be collected over eight quarters beginning in June 2024, with the FDIC noting it is designed to minimize the impact on bank liquidity and have a negligible effect on bank capital.

Credit Suisse analyst Susan Roth Katzke estimated this could reduce the median earnings per share of the top 14 banks by 3%. Banks with less than $5 billion in assets would not pay any fee.