uninsured.

Minutes of the Federal Open Market Committee, July 25-26, 2023: “Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs.”

by Dismal-Jellyfish Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further …

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$78 billion withdrawn from commercial banks last week (7/5-7/12). $869 billion in deposits has been pulled since the all time hit 4/13/22. With the FDIC announcement today banks aren’t reporting their uninsured deposits correctly, will this re-accelerate the bank run already picking up pace again?!?

by Dismal-Jellyfish I would like to review a few items this morning: Commercial deposit withdrawals Bank Term Funding Program (BTFP) making up for gaps Todays notice from FDIC banks aren’t correctly reporting the amount of deposits they have that aren’t …

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FDIC observed some institutions incorrectly reduced the amount reported to the extent the uninsured deposits are collateralized by pledged assets; this is incorrect as the existence of collateral has no bearing on the portion of a deposit that is covered by federal deposit insurance!

by Dismal-Jellyfish Source: https://www.fdic.gov/news/financial-institution-letters/2023/fil23037.html The FDIC observed that some insured depository institutions (IDIs) are not reporting estimated uninsured deposits in accordance with the instructions to the Consolidated Reports of Condition and Income (Call Report). For example, some institutions incorrectly reduced …

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