Big Banks Face Billions in Extra FDIC Fees After SVB Failure (1)

The largest banks face billions of dollars in extra fees to replenish the US government’s bedrock deposit insurance fund after it was tapped to backstop uninsured depositors at Silicon Valley Bank and Signature Bank.

The so-called special assessment that the Federal Deposit Insurance Corp. laid out on Thursday stems from the regulator’s extraordinary decision in March to insure all deposits at the two failed lenders. The FDIC estimates that move cost its Deposit Insurance Fund, which is typically used to cover only as much as $250,000 in an account, about $15.8 billion.

Although the plan could be tweaked in ...