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... Suspected fraud contributed to the failure of the bank and estimated cost to the DIF. ...
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... Suspected fraud contributed to the failure of the bank and estimated cost to the DIF. ...
More.
11-3-23 Citizens Bank of Iowa: cost to the Deposit Insurance Fund is $14.8 million
7-28-23 Heartland Tri-State Bank of Kansas: cost to the DIF is $54.2 million
5-1-23 First Republic Bank of California: cost to the DIF is $13.0 billion
3-12-23 Signature Bank of New York: cost to the DIF is $2.5 billion
3-10-23 Silicon Valley Bank of California: cost to the DIF is $20.0 billion
The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion. This is an estimate and the final cost will be determined when the FDIC terminates the receivership.
More.
SVB will cost the DIF $20 billion. Signature will cost $2.5 billion.
These are enormous sums.
Combined they represent a 17.55% hit to the $128.2 billion balance of the Deposit Insurance Fund as of 12/31/22.
SVB will rank numero uno in this list ahead of IndyMac's $12 billion.
Signature Bank will probably rank fourth ahead of Colonial Bank's $2.4 billion. The final costs are yet to be determined.
Until these two recent failures there were just six institutions in the billion dollar or higher club for DIF bailouts.
FDIC member institutions fund the DIF through FDIC-imposed assessments.
It is received opinion that these bailouts will cost the taxpayers nothing.
It is a fact that the tax-paying customers of these banks end up paying, through high interest rates on loans and effectively zero return paid by the banks on deposits.
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nonperforming bank loans as percentage of total |