FDIC proposes to set annual special assessment rate of 12.5 basis points

• FDIC propose a special fee to pay for banking failures
• Special fees will be based on amount of uninsured deposits at each bank
• Proposal would set annual special assessment rate of 12.5 basis points on a bank's uninsured deposits as of December 2022
• Proposes a special assessment fee on larger banks to recoup losses to insurance fund incurred by recent bank failures
• Estimates 113 banks would be subject to special assessment
• 1st 5 billion of uninsured deposits at each firm would be exempt from the
• Says it would collect a fee over 8/4 beginning in June 2024, which could be extended or shortened as needed
• Estimates banks with over 50 billion in assets would pay over 95% of the fees, no banks under 5 billion would pay
• New fee estimated to roughly equal losses incurred, it currently estimated at $15.8 billion

Someone has to pay and it will be the larger banks with the larger deposit base above the FDIC limits. They would benefit from the move of deposits from smaller to larger banks. The question is "Is the inertia toward less but bigger banks in motion and now hard to stop?"

The KRE regional bank indexes down -2.27%. PacWest Bancorp shares are lower by 19.49% at $4.92. The good news is the price is off the low of the day at $4, and the low from last week of $2.48.

Shares of US banks are trading lower:

Looking at the major indices Indices Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Stock market indices represents an index that measures a particular stock market or a segment of the stock market. These instruments are important investors as they help compare current price levels with past prices to calculate market performance.The main two parameters for indices are that they are both investable and transparent. For example, investors can invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and track Read this Term:

• Dow Industrial Average is down -372.2 or -1.11%
• S&P index is down minus 25.64.or -0.62%
• NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since ass Read this Term indexes down -25.28 points or -0.21%

Shares of Disney are a major drag on the Dow industrial average. They are down -8.72% at $92.30