Wells Fargo announced on Tuesday that it anticipates paying $1.8 billion to help restore the federal deposit insurance fund, which was depleted of $16 billion this year after three banks failed. Wells Fargo (NYSE: WFC) stated in a regulatory filing on Tuesday that it estimates being subject to a pretax “special assessment” of $1.8 billion …
Wells Fargo announced on Tuesday that it anticipates paying $1.8 billion to help restore the federal deposit insurance fund, which was depleted of $16 billion this year after three banks failed. Wells Fargo (NYSE: WFC) stated in a regulatory filing on Tuesday that it estimates being subject to a pretax “special assessment” of $1.8 billion under a proposal from the Federal Deposit Insurance Corporation (FDIC), which it will pay when the FDIC finalizes the rule. According to the FDIC’s May report, the largest banks will likely be responsible for paying the majority of the fund’s replenishment expenses. Additionally, Wells Fargo stated that several proposals about US capital regulations may require it to change its balance sheet. Wells Fargo said the new regulations will change their risk gauges for lending, trading, and internal operations in one of the first public comments from major U.S. lender since the recommendations were revealed last week. According to an early evaluation of the proposed rule, the company “expects a significant increase in its risk-weighted assets and a net increase in its capital requirements,” the bank stated. If the standards are completely implemented, large banks’ capital needs would increase overall by 16% from their existing levels, with the largest and most complicated companies being most affected, according to regulators.
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