Big Banks Saddled With Steep Tab for SVB, Signature Depositors

The US government overrode industry objections and approved a plan to saddle the biggest banks with much of the tab for refilling the nation’s bedrock deposit-insurance fund.

The Federal Deposit Insurance Corp. greenlit the key parts of a proposal the regulator made in May to replenish the fund. It typically only covers as much as $250,000 in an account, but was used to make whole uninsured depositors who were hit by banking turmoil this year.

US officials’ extraordinary decision to cover all uninsured depositors at Signature Bank and Silicon Valley Bank in March immediately kicked off political jostling over ...