JPMorgan To Pay $3-B To Replenish FDIC Fund

JPMorgan Chase expects to set aside about $3 billion to replenish the Federal Deposit Insurance Corp.’s (FDIC) fund once proposed rules are finalized by the bank regulator, the company said in a recent filing, Reuters reported.

Photo Insert: US banking giants are expected to shoulder the bulk of costs to refill the fund, which was drained of $16 billion this year after three banks collapsed.

US banking giants are expected to shoulder the bulk of costs to refill the fund, which was drained of $16 billion this year after three banks collapsed.

Wells Fargo estimated it will face a pretax “special assessment” of up to $1.8 billion, while Bank of America said it could face a pretax expense of about $1.9 billion once the FDIC proposal is finalized, according to separate filings this week.

Under the proposed rule, the FDIC would apply a “special assessment” fee of 0.125% to uninsured deposits of lenders in excess of $5 billion, based on the amount of uninsured deposits a bank held at the end of 2022, CNN also reported.

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