The collapse of Silicon Valley Bank and Signature Bank in
March shed light on a statutory mechanism meant to shield “uninsured”
depositors from harm when their bank fails. The mechanism is called the
Systemic Risk Exception and it is the subject of a new final rule recently
approved by the Federal Deposit Insurance Corp.
The rule requires covered entities to pay a special
quarterly assessment based on their estimated uninsured deposits to recoup
losses from the recent bank failures.