Input | Output |
---|---|
Link | Youtube |
Published | 2023/03/30 |
Theme | |
Status | article incomplete |
Beau says:
Beau explains how the FDIC is ensuring larger banks, not Americans, cover the costs of shoring up its fund, protecting smaller community banks from adverse impacts.
Financial enthusiasts, bank customers.
Details on the potential consequences for larger banks and the broader banking industry from the FDIC's plan to have them bear the costs of fund stabilization.
#FDIC #Banks #Insurance #FinancialSecurity #CommunityBanks
Well, howdy there, internet people.
Let's bow again.
So today we are going to talk about the FDIC and banks
and assessments and poetic justice.
So as most people know, recently there
were a couple of banks that did not do so well.
They ran into major issues, and the accounts
had to be covered by the FDIC, which is pictured as insurance
for your bank account.
The cost to the FDIC for those bank failures, right now,
I want to say it's at like $23 billion.
Now, the fund that the FDIC has, they have to shore that up.
They have to get money to put back into that.
And this was something when all of the insurance stuff was going on.
This was something that a lot of Americans were worried that they were going to have
to pay for.
That's not how it works.
The FDIC is insured by banks.
they get a kind of an insurance rate that they have to pay.
Interesting little tidbit is that the FDIC
has a whole lot of leeway in determining which banks get
assessed, how much they pay, their rates, so on and so
forth.
They have indicated, the reporting
indicates that the way they are currently
looking at shoring up this fund is
to steer a large portion towards what they
are calling industry leaders.
They're going to stick it to the big banks.
That's who's going to pay for it.
Oh, no.
The goal here is to make sure that community banks
and stuff like that that don't have as much money
are not adversely impacted.
So the current line of thinking with this
is that the assessments for larger banks
are going to be at a higher rate than smaller banks.
And we're not just talking about total dollar amount.
That part's obvious.
But also, let's say it's a percentage.
Small bank may get 5%.
Big bank may get 15%.
That's not actually how it's done.
That's for illustrative purposes.
But it does appear that the FDIC is basically
going to really make the banks bail themselves out
this one which is I mean that's a nice change right that's that's that's
interesting this isn't finalized yet but there's a lot of political pressure to
make sure that smaller banks don't have to carry the burden here and the FDIC
line of thought at this point in time is to make the industry leaders come up
with cash and the way this works is I want to say it's every quarter they have
to make what amounts to an insurance payment and that those larger banks the
well their premium is going to go up. Anyway it's just a thought y'all have a
a good day.
{{Shirt}}
{{EasterEgg}}