JPMorgan says it expects to pay about $3 billion to help refill FDIC fund
Reuters
Published Aug 03, 2023 04:57PM ET
Updated Aug 03, 2023 06:01PM ET
By Nupur Anand
NEW YORK (Reuters) -JPMorgan Chase expects to set aside about $3 billion to replenish the Federal Deposit Insurance Corporation's (FDIC) fund once proposed rules are finalized by the bank regulator, the company said in a filing on Thursday.
U.S. 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 (NYSE:WFC) estimated it will face a pretax "special assessment" of up to $1.8 billion, while Bank of America (NYSE:BAC) 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.
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Written By: Reuters
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