New York CNN —US financial regulators on Tuesday signed off on new rules to prepare large and regional banks in the case of failure.
But the FDIC backed deposits that exceeded that limit when Silicon Valley Bank and Signature Bank failed earlier this year, to reduce the risk of more bank failures.
In total, the three bank failures depleted $31.5 billion from the DIF, according to FDIC estimates.
Had the proposed rule been in place prior to the three bank failures, it could have prevented many uninsured depositors from causing a bank run, the agencies said.
That could make it easier for the FDIC to seize and sell a failed bank, something the agency struggled to do in a timely manner with SVB and Signature Bank.
Persons:
Greg Baer, ” Baer, Martin Gruenberg, ” Banks
Organizations:
New, New York CNN, Federal Deposit Insurance Corporation, Federal Reserve, Currency, FDIC’s, Insurance Fund, Silicon Valley Bank, Signature Bank, Bank, JPMorgan Chase, Bank Policy Institute, FDIC
Locations:
New York