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Sens. Brown, Vance Seek to Exclude Certain Deposits from Special Assessment

Sens. Brown, Vance Seek to Exclude Certain Deposits from Special Assessment

Posted: Jul 26 2023
The FDIC should focus on the types of uninsured deposits that were at the greatest run risk during the recent bank failures in its special assessment, Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sen. J.D. Vance (R-Ohio) said in a joint letter to the agency. The proposed assessment, which would recover the costs of protecting uninsured deposits at Silicon Valley Bank and Signature Bank, would exempt the first $5 billion in uninsured deposits. However, the Ohio senators said that while the assessment would not apply to most community banks, “it does impact some Main Street-focused regional banks.”

Brown and Vance said FDIC should consider excluding collateralized and affiliate deposits when calculating an institution’s amount of uninsured deposits. They also said the agency should consider using post-failure deposit data from March 31, 2023, to better reflect the migration of deposits to the largest banks.
 
To read more, visit: https://www.brown.senate.gov/newsroom/press/release/sherrod-brown-vance-support-regional-banks-ohio-bank-failures
 

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