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The Federal Deposit Insurance Corporation (FDIC) on Thursday proposed a special assessment of the largest U.S. banks to recover the funds used to protect uninsured depositors who otherwise would’ve been left holding the bag following the failures of Silicon Valley Bank (SVB) and Signature Bank.
The proposed special assessment would recoup the $15.8 billion paid out from the FDIC’s Deposit Insurance Fund to protect depositors in SVB and Signature who had deposits in excess of the $250,000 insurance threshold. It would do so by imposing a fee of 0.125% – or 125 basis points – on insured deposits at banks with $5 billion in assets or more, which would remain in effect for eight quarterly assessment periods starting in the first quarter of 2024.
The FDIC estimates that about 113 banks will be subject to the fee and that banks with more than $50 billion in total assets will pay about 95% of the special assessment, while those with less than $5 billion will be exempt.
"The proposal applies the special assessment to the types of banking organizations that benefited most from the protection of uninsured depositors, while ensuring equitable, transparent, and consistent treatment based on amounts of uninsured deposits," said FDIC Chairman Martin Gruenberg. "The proposal also promotes maintenance of liquidity, which will allow institutions to continue to meet the credit needs of the U.S. economy."
FDIC ENLISTS BLACKROCK TO CLEAN UP BANKING CASTOFFS
The Federal Deposit Insurance Corporation is imposing a special assessment fee on larger banks to replenish an insurance fund that was tapped following the failures of Silicon Valley Bank and Signature Bank. (AP Photo/Peter Morgan / AP Newsroom)
Under the Federal Deposit Insurance Act, the FDIC is required to impose an assessment fee on banks to recover funds paid out from the Deposit Insurance Fund whenever a systemic risk designation is invoked by regulators amid a banking crisis.
The proposed assessment has to go through the federal rulemaking process, which includes a 60-day public comment period after the proposal appears in the Federal Register. It Is also subject to revision before it is finalized if changes are made to the loss estimates, mergers or failures occur, or the reported estimates of uninsured deposits.
WILL FIRST REPUBLIC BE THE LAST BANK RESCUED AMID BANKING CRISIS?
Signature Bank failed in March and was acquired by New York Community Bank in a $2.7 billion deal. (AP Photo/Bobby Caina Calvan / AP Newsroom)
SVB and Signature Bank both had relatively large amounts of uninsured deposits at the end of last year which made them vulnerable to collapse when depositors moved to withdraw their funds. SVB’s uninsured deposits were roughly 93% of its total deposits at the end of last year, while Signature’s amounted to 89% of its deposit base at that time according to regulatory filings.
The failure of those banks and the structure of the FDIC’s special assessment means that the nation’s largest banks – including the likes of JPMorgan Chase, Bank of America and Wells Fargo – will have to foot the bill. FOX Business reached out to those three institutions for this story, and they either declined to comment or did not respond prior to the deadline.
FDIC LOOKS TO CHANGE DEPOSIT INSURANCE POLICY FOLLOWING FIRST REPUBLIC FAILURE
Silicon Valley Bank failed in March and was acquired by First Citizens Bank for over $16 billion. (REUTERS/Brittany Hosea-Small / Fox News)
The American Bankers Association, which is one of the nation’s largest financial sector trade groups, said in a statement from President and CEO Rob Nichols, "While we are still reviewing the details of the proposed special assessment, including the methodology and the dissenting votes, we appreciate the FDIC’s decision to exclude most community banks."
"Once we receive input from our members, we will be prepared to provide industry feedback to the FDIC on the special assessment, the timing of the expense, and the ongoing increase in quarterly Deposit Insurance Fund assessments on banks," Nichols added.
Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey said in a statement that, "ICBA and the nation’s community banks commend the FDIC for today’s proposal to exempt the vast majority of community banks from its special assessment following the recent failures of Silicon Valley Bank and Signature Bank of New York – which we’ve advocated since the immediate aftermath of these large bank failures."Ticker Security Last Change Change % JPM JPMORGAN CHASE & CO. 136.05 -0.43 -0.32%WFC WELLS FARGO & CO. 38.33 +0.05 +0.13%BAC BANK OF AMERICA CORP. 27.39 +0.07 +0.26%
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"As ICBA has repeatedly said, including in a letter to FDIC Chairman Martin Gruenberg, community banks should not have to bear any financial responsibility for losses to the Deposit Insurance Fund caused by the miscalculations of large financial institutions," Romero Rainey added. "Large banks should pay for the special assessment because they are the chief beneficiaries of these two receiverships."
Kim Kardashian has arrived at court to face a group accused of robbing her at gunpoint nearly a decade ago.
Wearing a black skirt suit, sunglasses, and with her hair pulled back into a chignon, the US reality star walked up the steps accompanied by her mother Kris and a large entourage.
The US reality star greeted the judge with a soft “Hello,” thanking the French authorities for “allowing me to tell my truth”.
Image: Kim Kardashian waves as she arrives at court. Pic: AP
She began by telling the court of her love for Paris, calling it a “magical place,” before becoming tearful when describing the robbery, and talking of her “confusion” when two men entered her room dressed as police officers, accompanied by the handcuffed concierge.
She told the court: “I had fallen asleep naked with a robe on, I was flustered.”
Kardashian will face 10 defendants who it is alleged pulled off one of the most audacious celebrity heists in modern French history in the early hours of 3 October 2016.
Ahead of her in-person appearance, Kardashian’s lawyers said she was ready to “confront” the defendants and intended to do so “with dignity and courage”.
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It’s alleged that five masked men posing as police officers stormed the residence, with two entering Kardashian’s room and robbing her at gunpoint.
Image: Kim Kardashian. Pic: Reuters
Police say the men escaped on bicycles, with around $9m of jewellery, including a $4m engagement ring from Kardashian’s then-husband Kanye West. Most of the jewellery was never recovered.
Earlier on Tuesday, in Paris’s central criminal court, Kardashian’s stylist Simone Harouche described the moment she was woken by the US star’s screams of terror and feared she had been “raped or violated”.
Ms Harouche, 45, who says she has worked for Kardashian for many years and has been friends with her since she was 12, told the court she was woken by “a sound I had never heard from Kim… It was terror”.
Sleeping in a separate apartment, on the next floor down from Kardashian’s, she went on: “What I heard specifically was [Kim saying], ‘I have babies and I need to live – that is what she kept saying… Take everything. I need to live'”.
She told the judge: “When I realised something terrible was going on upstairs and I realised it was not friends [in Kim’s room], I started looking for my telephone and I started looking for something to help save mine and Kim’s life.”
Image: Simone Harouche pictured last year. Pic: Virisa Yong/BFA.com/Shutterstock
She went on to lock herself in her bathroom and hide in her shower, where she called Kardashian’s sister Kourtney and texted her security guard, Pascal Duvier, telling them, “Something is very wrong… Kim is upstairs with men and we need help.”
She says minutes later, Kardashian “hopped” into her room, explaining: “To see my friend with her feet taped and a very light robe with nothing under, and all messed up and pulled, I thought she could have been raped or very violated.”
She said she removed the tape from Kardashian’s feet, and her friend was “beside herself”, adding, “I’ve never seen her like that before. She was screaming, ‘We need to get out, what do we do if they come back? We need to jump from the first floor, we need to get out'”.
Later, when questioned by the lawyer of one of the defendants on why she did not come out of the bathroom, she said: “I’m the kind of person to hide, [Kardashian’s] the kind of person to take care of other people.”
‘Just because a woman wears jewellery, doesn’t make her a target’
When asked by the judge whether she or Kardashian had believed at the time that wearing and sharing images of such expensive jewellery would be a risk, Ms Harouche says: “Just because a woman wears jewellery doesn’t make her a target. That’s like saying because a woman wears a short skirt she deserves to be raped”.
She went on to say: “I think that that moment changed [Kardashian’s] life forever… In terms of security, she doesn’t go alone to places anymore.”
Following the robbery, Ms Harouche says she quit her job as a stylist as the experience “made me fearful of all the things that could happen to celebrities, and being around them”.
Asking for ‘forgiveness’
At the end of her time in the witness stand, the judge attempted to play a video message from one of the defendants, Yunice Abbas.
Image: Kardashian at the Siran Presentation on the day of the robbery. Pic: Matteo Prandoni/BFA/Shutterstock
Mr Abbas, who has admitted his part in the heist, published a book in 2021, titled “I Kidnapped Kim Kardashian”. A court has since ruled he will not benefit financially from it.
A tech issue meant the message would not play, so instead, the judge read out the statement from Mr Abbas, asking for “forgiveness” for his actions. When asked by the judge if she had a reaction to the apology, Ms Harouche answered, “No”.
The trial, which is being held in front of three judges and six jury members, is due to conclude at the end of this week.
This breaking news story is being updated and more details will be published shortly.
AMELIA ISLAND, Fla. — Miami coach Mario Cristobal said Monday that quarterback Carson Beck has been cleared to participate in all team summer activities and is approaching 100 percent following elbow surgery last year.
Cristobal said Beck has been throwing for the past three weeks as part of his rehab regimen. Beck missed all of spring practice and has yet to throw to Miami’s receivers as part of organized team activities. But that is all about to change when Miami begins summer workouts next week.
“He’s good to go,” Cristobal told ESPN at the ACC spring meetings. “He’s exceeding every benchmark.”
Beck underwent surgery on his right elbow to repair his ulnar collateral ligament, which he injured on the final play of the first half in second-ranked Georgia‘s 22-19 overtime win against Texas in the SEC championship game Dec. 7.
Beck started at Georgia for two seasons, going 24-3, and ESPN’s Mel Kiper Jr. had him rated as the No. 5 quarterback for the 2025 draft. But given his injury and inconsistent performance in 2024, Beck entered the portal in January. He quickly opted for Miami, where he will replace No. 1 NFL draft pick Cam Ward.
Beck threw for 7,426 yards over his two seasons as Georgia’s starter, fifth most among all FBS passers since 2023, with 57 total touchdowns and 23 turnovers.
AMELIA ISLAND, Fla. — NCAA president Charlie Baker said Monday he was “up for anything” when asked about a President Donald Trump-proposed commission on collegiate athletics.
Reports surfaced last week that Trump was going to create the commission.
While his conversations at ACC meetings with league football coaches, men’s and women’s basketball coaches, athletic directors and other school officials focused on governance and the pending House settlement, Baker was asked during an informal media availability for his thoughts on the presidential commission.
“I think the fact that there’s an interest on the executive side on this, I think it speaks to the fact that everybody is paying a lot of attention right now to what’s going on in college sports,” Baker said.
“I’m up for anything that can help us get somewhere.”
Baker noted the NCAA has already spent time in Washington asking for congressional help that is focused on three big issues. Among the biggest: a patchwork of state laws that relate to how collegiate athletics work in individual states; and whether student-athletes should be considered employees.
“I think [Congress] can help us. I really do,” ACC commissioner Jim Phillips said during an interview with ACC Network. “We have been very bold in the desire for a national standard when it comes to name, image and likeness. We need to make sure that we have something that comes out of Washington that connects all 50 of the states because we’ve had a piecemeal project and it’s really undermined college sports. It’s been a race to the bottom. So that’s one. Two is we need some legal protection. We cannot sustain one legal case after another legal case after another legal case. A reaffirmation that these are student-athletes. Those three things to me will be very important to see if that can come out of the commission.”
Baker said, “People in our office have talked to folks who are working on this, but I don’t think they’ve decided the framework around who they want to put on.”
When asked whether he felt the creation of a commission would enhance the NCAA’s chances at legislative relief, Baker said, “I don’t have a crystal ball on that one. I don’t know. I do think, though, that it’s quite clear at this point that there are a lot of people interested in college sports, and we do need some help at some point to create some clarity around some of these issues in Washington. Creating clarity one lawsuit at a time is just a really bad way to try to move forward.”