Senator Warren Urges FDIC to Crack Down on Big Banks' Misreporting of Uninsured Deposits; Blasts Agency's "Feeble" Initial Response

Press Release

"We are concerned these banks may be misreporting important information in an effort to reduce their Deposit Insurance Fund assessment, and we are troubled by the agency's feeble response to these concerns, which consisted of a "reminder' to the banks via a Financial Institution Letter. We write to ask for more information on this problem and the tools the agency has to discourage this behavior."

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"The banks' revisions would reduce their individual payments -- payments which are fairly calculated based on the benefit they received from the FDIC's actions -- and leave a gap in the DIF that could result in significant problems in the event of another large bank failure or series of bank failures. This isn't the first time that banks have tried to get out of paying their fair share to the DIF."

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"The appears to be doing nothing to hold banks that are reporting inaccurate data accountable. The agency's Financial Institution Letter names no names, and imposes no consequences. The banks that are inaccurately reporting uninsured deposits are making millions of dollars doing so, while putting the entire banking system at increased risk -- without receiving even the lightest slap on the wrist."

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