FDIC has only about half the cash needed to cover roughly $264B in deposits at failed banks, report

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The Federal Deposit Insurance Corporation has $128 billion of cash on hand while deposits at failed banks are $264 billion, according to the latest data available.

Signature Bank has $88.6 billion of deposits and Silicon Valley Bank has $175.4 billion of deposits. According to the FDIC’s most recent quarterly report, the agency has a balance of $128 billion.

Signature failed Sunday and Silicon Valley failed Friday.

The FDIC, Treasury Department and Federal Reserve said jointly Sunday they are working together to allow depositors access to their money.

FDIC said Monday the exact amount of uninsured deposits will be determined once the agency obtains additional information from the banks and customers.

President Biden said Monday that taxpayers won’t be on the hook for bank losses.

“The money will come from the fees that banks pay into the deposit insurance,” he said.

House Financial Services Committee Chairman Patrick McHenry, reacting to the collapse of Silicon Valley Bank, said he has confidence in financial regulators to handle the situation.