Footing the FDIC Bill, and More
The FDIC estimates that 113 banks will pay special assessments that will foot the $16 billion expense, with 95% coming from banks with more than $50 billion in assets.
Making Up the DIF: Earlier today, the FDIC released a proposal for replenishing its Deposit Insurance Fund, which took a big hit after the agency backstopped billions in uninsured deposits after the failures of Silicon Valley Bank and Signature Bank of New York. The FDIC estimates that 113 banks will pay special assessments that will foot the $16 billion expense, with 95% coming from banks with more than $50 billion in assets. Banks with assets less than $5 billion would be exempt.
Regulatory Rollback? By taking up a legal challenge related to the fishing-industry, the U.S. Supreme Court signaled last week that it would reconsider Chevron v. Natural Resources Defense Council, a 1984 opinion that allows regulators to interpret vague or archaic rules. “The Chevron doctrine has been really important for signaling to the courts to let regulatory agencies adapt” to new technologies, University of Pennsylvania law professor Cary Coglianese told the Wall Street Journal. Any weakening of the Chevron opinion could aid those in opposition to the White House’s regulatory agenda. A possible target, according to the WSJ, could be the SEC’s proposed climate-disclosure rule. But experts, including Coglianese, suggested a Chevron rollback would have “a modest impact,” because courts tend to defer to agency interpretations of statutes anyway.
OK’s ESG Blacklist: The state-level fight over ESG policies rages on, and once again banks are caught in the crossfire. Oklahoma has banned 13 banks and financial institutions from receiving state contracts in excess of $100,000 “because they are engaged in boycotts of fossil fuel companies.” Oklahoma joins Kentucky, West Virginia, and Texas as states that have made similar moves. “It is essential for us to work with financial institutions that are focused on free-market principles and not beholden to social goals that override their fiduciary duties,” said Oklahoma State Treasurer Todd Russ, who took office in January.