{"id":14779,"date":"2023-04-18T15:18:40","date_gmt":"2023-04-18T15:18:40","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/despite-svb-collapse-fdic\/"},"modified":"2023-04-18T15:23:46","modified_gmt":"2023-04-18T15:23:46","slug":"despite-svb-collapse-fdic","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/despite-svb-collapse-fdic\/","title":{"rendered":"Despite SVB collapse, FDIC on track to recoup insurance losses: Chair"},"content":{"rendered":"<p>(Reuters) &#8211;     Despite the second- and third-largest bank failures in U.S. history last month, the U.S. Federal Deposit Insurance Corporation remains on track to refill its deposit insurance fund ahead of a 2028 legal deadline, the head of the agency said Tuesday.<\/p>\n<p>At a public meeting of the Federal Deposit Insurance Corporation, Chairman Martin Gruenberg said a plan adopted three years ago to bring the FDIC insurance fund back to a legal minimum need not change despite March&#8217;s collapse of Silicon Valley Bank and Signature Bank, which cost the FDIC an estimated $22.5 billion.<\/p>\n<p>The failures &#8220;are not expected to have a material effect on the projected timeline,&#8221; Gruenberg said in prepared remarks, citing staff projections.<\/p>\n<p>By law, the FDIC must keep at least $1.35 in the fund for every $100 of insured deposits, making in a crucial tool in preserving public confidence in the financial system.<\/p>\n<p>Banks pay quarterly, risk-weighted insurance premiums into the fund. However, after it fell below this ratio due to a rise in insured deposits during the coronavirus pandemic response in 2020, the FDIC adopted a plan to refill the fund by 2028.<\/p>\n<p>The March bank failures resulted in more than $3 billion in losses to cover insured funds, with the remaining $19.2 billion occurring because the FDIC also agreed to cover uninsured deposits at both banks.<\/p>\n<p>According to Gruenberg, the timeline will not be changed because the larger uninsured losses are due to be replaced through a &#8220;special assessment,&#8221; which the FDIC says it will propose next month. <\/p>\n<p \/>\n<p> (Reporting by Douglas Gillison; Editing by Chizu Nomiyama)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/despite-svb-collapse-fdic\/file-photo-fdic-insured-sign-is-displayed-at-a-first-2\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3H0MY-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3H0MY-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) &#8211; Despite the second- and third-largest bank failures in U.S. history last month, the U.S. Federal Deposit Insurance Corporation remains on track to refill its deposit insurance fund ahead of a 2028 legal deadline, the head of the agency said Tuesday. At a public meeting of the Federal Deposit Insurance Corporation, Chairman Martin Gruenberg [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":14780,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-14779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3H0MY-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=14779"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14779\/revisions"}],"predecessor-version":[{"id":14781,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14779\/revisions\/14781"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/14780"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=14779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=14779"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=14779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}