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> Banks pay premiums to the FDIC for their insurance, and it's a requirement of all chartered banks. Do they have special rules for when the FDIC decides to re
by luckylion 4y ago
> Banks pay premiums to the FDIC for their insurance, and it's a requirement of all chartered banks.
Do they have special rules for when the FDIC decides to retroactively insure some bank's deposits for more than $250k per account holder? Because now everyone's insurance premiums will go up to cover this, won't they?
- reissbaker 4y agoWhat? The FDIC controls the premiums, because the FDIC is the insurer. Moreover, the FDIC is not actually paying out any insurance claims here! SVB is being acquired, and the acquirer is providing access to funds on Monday, not the FDIC. There is no cost to the taxpayer here, and the FDIC is not raising premiums as a result of this either. It didn't pay out any claims (and wouldn't likely raise premiums even if it did).
- luckylion 4y agoNot the taxpayers, all the other banks which are funding FDIC have to pay: > Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. So even those that were not insured will now be retroactively insured, and the better-run banks will have to pay for it, won't they?
- astrange 4y agoThere aren't any losses to the deposit insurance fund yet. If this increases confidence then it will instead reduce how much is taken from it.