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Freedom Capital Markets chief global strategist Jay Woods tells Cavuto: Coast to Coast that if the banks stabilize, the rebound can be quick as stocks fall on renewed bank worries.

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."

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Leafs’ Matthews in Germany for injury treatment

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Leafs' Matthews in Germany for injury treatment

TORONTO — Auston Matthews boarded a plane and crossed an ocean.

The Toronto Maple Leafs are hoping the trip provides some answers — and returns their best to the ice.

General manager Brad Treliving said following Tuesday’s practice his captain, out day-to-day since Nov. 5 because of an undisclosed upper-body injury, is in Germany to see a doctor the star center has worked with in the past.

“More as a general checkup,” Treliving said during an unscheduled availability with reporters. “But also to get some work done on this thing.”

Matthews has sat out six games and will be out a seventh Wednesday when Toronto hosts the Vegas Golden Knights.

Treliving, who added a team doctor accompanied the star forward to Europe, said with the Leafs playing only twice this week the organization decided to use the time to its advantage.

Treliving declined to provide further details on what’s ailing Matthews, who’s believed to have skated only twice since last playing Nov. 3.

“There’s been no setbacks,” Treliving said of the 2022 Hart Trophy winner. “Everything’s been, actually, going quite well. We’re just trying to use the days that we’ve got here with less games being played to just try to get this behind us.”

Toronto (11-6-2) was already down three forwards with Matthews, Max Pacioretty and Calle Jarnkrok sidelined before announcing earlier Tuesday center David Kampf (lower-body injury) is also now on the shelf. Fraser Minten was recalled from the minors to take his spot.

Reaves reaction

Leafs enforcer Ryan Reaves was suspended five games for Saturday’s illegal check to the head on Oilers defenseman Darnell Nurse.

“Never want to see anybody injured,” Treliving said. “It’s a hockey play that goes wrong.”

Reaves was in Toronto’s locker room Tuesday following practice and appeared willing to speak with reporters, but the team’s communications staff intervened and made it clear the 37-year-old forward wasn’t available to comment.

“We thought it was a little high,” Leafs center John Tavares said of a ban from the NHL’s Department of Player Safety that rules Reaves out until Dec. 4. “But we’ll stick behind him … we know how effective he’s been.”

Domi struggling

Leafs forward Max Domi has just six assists — and is on a career-worst 13-game point drought — despite playing an offensive role.

The 29-year-old, who was on the ice Tuesday, missed two recent practices for maintenance.

“He’s fighting through a lot right now … he’s banged up,” coach Craig Berube said. “I’m not overly concerned. We gotta keep working through it.”

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NHL ref Dunning back home after on-ice collision

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NHL ref Dunning back home after on-ice collision

PHILADELPHIA — The NHL referee who was stretchered out of a game following a violent collision with Colorado defenseman Josh Manson was back home Tuesday and expected to make a full recovery.

The league said that Mitch Dunning was home following a trip to the hospital for precautionary reasons after he was accidentally knocked down by Manson in the Avalanche-Flyers game.

Manson skated alone on the ice Monday night when he slammed into Dunning near the blue line early in the first period. Dunning went down in a heap and lay prone on the ice for several minutes. Dunning appeared to be moving his feet and moved his right hand when Manson went to talk to him.

The game at the Wells Fargo Center was delayed for several minutes while trainers and medical staff tended to Dunning.

The game continued with one referee and two linespersons. Colorado beat Philadelphia 3-2.

Dunning is a former professional hockey defenseman who played parts of three seasons in the OHL. He later shifted into officiating and was promoted to full-time NHL status in 2022.

The NHL did not say when Dunning would return to work.

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2 years after record season, B’s fire Montgomery

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2 years after record season, B's fire Montgomery

The Boston Bruins have fired coach Jim Montgomery after stumbling to a losing record in their first 20 games, the team announced Tuesday.

Associate coach Joe Sacco was elevated to interim head coach. The Bruins are off to an 8-9-3 start (.475 points percentage) and outside of a playoff seed in the Eastern Conference.

General manager Don Sweeney called the move “a difficult decision.”

“Jim Montgomery is a very good NHL coach and an even better person. He has made a positive impact throughout the Bruins organization, and I am both grateful and appreciative of the opportunity to work with him and learn from him,” Sweeney said in a statement.

Sacco was previously coach of the Colorado Avalanche from 2009 to 2013 and has been a part of the Boston coaching staff since 2014. The 55-year-old had a 13-year NHL playing career with five teams from 1990 to 2003.

“Our team’s inconsistency and performance in the first 20 games of the 2024-25 season has been concerning and below how the Bruins want to reward our fans. I believe Joe Sacco has the coaching experience to bring the players and the team back to focusing on the consistent effort the NHL requires to have success,” Sweeney said. “We will continue to work to make the necessary adjustments to meet the standard and performance our supportive fans expect.”

Montgomery, 55, had a 120-41-23 record (.715 points percentage) in three seasons with the Bruins, making the playoffs twice. Both trips to the postseason ended at the hands of the Florida Panthers. Boston was stunned in a seven-game, first-round upset in 2023 after having the most successful regular season in NHL history (135 points), and again earlier this year when it lost to Florida in the second round after eliminating the Maple Leafs in seven games.

Montgomery won the Jack Adams Award as NHL coach of the year in 2022-23. He previously coached the Dallas Stars for two seasons (2018-20), amassing a record of 60-43-10.

As Montgomery chronicled in his 2023 NHL Awards speech, his success in Boston came after he turned his personal life around. “Three and a half years ago, the Dallas Stars terminated my contract because of my struggles with alcohol,” he said. “And I had to change my actions and behaviors.”

Despite Sweeney saying the sides were discussing an extension during training camp, Montgomery didn’t have a contract beyond the 2024-25 season.

The Bruins have been one of the NHL’s most notable disappointments this season. They’re 31st in team offense (2.40 goals per game) and 28th in defense (3.45 goals against per game).

Previously dependable aspects of the team have malfunctioned, in particular the goaltending. The team traded former Vezina winner Linus Ullmark to the Ottawa Senators for goalie Joonas Korpisalo. The Ullmark deal broke up the best goalie tandem in the NHL with 26-year-old Jeremy Swayman, who missed training camp during a bitter negotiation before signing an eight-year contract that will pay him $66 million.

Swayman has a 5-7-2 record with an .884 save percentage and a 3.47 goals-against average. After the Bruins lost to the Columbus Blue Jackets 5-1 on Monday, Montgomery said missing training camp wasn’t advantageous.

“I don’t think missing training camp helps anyone,” Montgomery said. “That’s why you have training camps.”

Montgomery has been seen having animated discussions with captain Brad Marchand on the Boston bench multiple times this season. He also benched leading goal scorer David Pastrnak in a game earlier this month.

Montgomery’s firing is the first coaching change of the 2024-25 season. Sacco is the fourth head coach under Sweeney since the GM took over in 2015.

“I’m supportive of Don’s decision to address our current play and performance,” team president Cam Neely said in a statement. “Joe Sacco has a wealth of experience and knowledge of our roster and can help lead our team in the right direction. He has a strong understanding of our standards and expectations, and I trust he will do all he can to accomplish our organization’s goals this season.”

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