“Special assessment on banks” - Can someone explain?

All FDIC insured banks pay Deposit Insurance premiums to help keep the Deposit Insurance Fund with enough funds to cover the insured deposits. There is formula for the banks to make their quarterly assessments.

LINK to FDIC assessment methodology

Side note- Banks will be screaming about being assessed to cover non-insured deposits so it should get interesting.

Well SVB is now in receivership so it’s owned by the FDIC and they are covering. The Failed Bank review will be interesting on this one. Don’t think they had large credit losses to drive them under. Just unrealized losses on bonds.

So yes. Banks pay taxes unlike credit unions so taxpayers will be covering it. And passing it along to account holders via fees etc.

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I am not sure there is a huge delta in asset and debts

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Can someone explain to me what this ACTUALLY means and how it will affect us all? Maybe it’s just me, but I feel that, someway, somehow, the US taxpayer will “bear” this.

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It means all banks in the federal reserve system will be assessed a fee or “tax” for the losses incurred with bank failures. Banks can either absorb those fees/taxes in their profit and losses which will affect their dividends (shareholders) or they can pass it down to their customers in increasing fees.

Most bank users are tax payers. A lot of non tax payers are the “make it out to cash” types