The largest US banks anticipate contributing nearly $8.9 billion to restore the US government's fundamental Deposit Insurance Fund. 

The Deposit Insurance Fund typically covers up to $250,000 in an individual bank account. However, when Silicon Valley Bank and Signature went into receivership in March, the FDIC, Federal Reserve, and Treasury Department took action. In the midst of political pressure, they recognized a potential threat to the financial system and introduced exceptions for systemic risk for these two banks. As a result, all depositors at these banks were ensured full compensation to prevent any additional destabilization.

Citigroup Inc. is projecting a contribution of up to $1.5 billion to the Federal Deposit Insurance Corp.'s fund, which was diminished due to safeguarding deposits at the two failed banks. This disclosure makes Citigroup the final major US bank to reveal its allocated funds. Collectively, the six largest banks are estimated to cover 56% of the $15.8 billion expended by the FDIC to secure uninsured depositors. Among them, JPMorgan Chase & Co. anticipates the largest payment of approximately $3 billion, while Bank of America Corp. and Wells Fargo & Co. will each provide nearly $2 billion. As reported by AdvisorHub, institutions with more than $50 billion in assets would pay 95% of the fees, and those with less than $5 billion would pay nothing.

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