, which was seized by regulators on Monday and sold to JPMorgan Chase & Co., did not require any formal government backstop, though the FDIC said the transaction would cost it $13 billion, on top of the $22.5-billion hit it has already taken from the SVB and Signature Bank failures.
That $250,000 limit was enshrined in law by the 2010 Dodd-Frank reform law passed following the 2008 financial crisis, upped from what was before a $100,000 cap.Some 99% of US bank accounts are fully insured under current FDIC limits. But uninsured deposits have grown rapidly in recent years, tripling since 2009 to $7.7 trillion.
Some of the increase, the report noted, may be a temporary effect of the deposit surge from COVID-19 pandemic government aid. But to the extent those large deposits are payroll or other business payment accounts, the report said, they may be “relatively more sensitive to adverse developments affecting banks.”