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Factbox-US banks outline expected costs to replenish FDIC's deposit insurance fund

Published 08/08/2023, 02:27 PM
Updated 08/08/2023, 02:30 PM
© Reuters. FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. REUTERS/Jason Reed/File Photo
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(Reuters) - U.S. banks have started to detail the expected impact to their costs from the "special assessment" fee they have to pay to replenish the Federal Deposit Insurance Corporation's deposit insurance fund.

In May, the banking regulator said large U.S. lenders would bear most of the costs to replenish the fund.

Here is what banks have disclosed so far:

Expected

Bank Estimated costs timeline to recognize

costs

Wells Up to $1.8 bln Will expense the entire

Fargo pre-tax amount upon FDIC's

finalization of the

proposal.

Bank of Non-interest Cost would be recognized

America expense of upon finalization of the

nearly $1.9 bln proposal.

Goldman About $400 mln Expense would be

Sachs pre-tax recognized entirely in

Group the quarter in which the

rule is adopted.

PNC Nearly $468 mln Would be incurred in the

Financial pre-tax, or $370 quarter the FDIC

Services mln after-tax finalizes the proposal.

Group

JPMorgan (NYSE:JPM) About $3 bln Would be recognized in

Chase pre-tax the quarter in which the

proposal is finalized,

which is expected in the

second half of 2023.

Morgan About $270 mln Will recognize after the

Stanley final rule is published.

Truist About $460 mln Would be recognized at

Financial the time the proposal is

finalized and paid in

eight quarterly

installments beginning

in the first quarter of

2024.

Citigroup (NYSE:C) Up to $1.5 bln May incur a significant

pre-tax increase in operating

expenses if the final

rule for the FDIC

special assessment is

enacted as proposed,

which is expected before

2023 end.

Regions About $111 mln Full amount would be

Financial accrued concurrent with

the finalization of the

© Reuters. FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. REUTERS/Jason Reed/File Photo

proposal

Source: Bank quarterly filings

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