JPMorgan, Bank of America and 4 other Wall Street titans are set to pay $8.9 billion after this spring's banking fiasco

bankingfdicbank-failuresspecial-assessment

Abstraction: Wall Street FDIC special assessment after 2023 bank failures

Key points:

Six large banks will pay a combined $8.9 billion FDIC special assessment: JPMorgan $3B, BofA and Wells Fargo ~$2B each, Citi $1.5B, Goldman $400M, Morgan Stanley $270M
FDIC promised to cover all depositors at SVB and Signature Bank in March 2023, creating a $15.8B hole in the deposit insurance fund
First Republic Bank's May 2023 failure added another estimated $13B hit to the fund
Root cause: Fed rate hikes of 500 basis points since early 2022 triggered steep bond portfolio losses at small and midsize lenders
JPMorgan CEO Jamie Dimon warned further rate hikes could cause additional banking turmoil

Connections: Jpmorgan · Fdic · Silicon Valley Bank · Bank Failures · Banking Regulation