WASHINGTON–A countersuit lawsuit has reportedly been filed in a dispute between the Federal Deposit Insurance Corporation (FDIC) and Capital One over how much the bank should pay to help bail out depositors of two financial institutions that failed in 2023: Silicon Valley Bank and Signature Bank.
The FDIC is alleging that Capital One paid nearly $100 million less than it should have to help with the bailout, according to Reuters.
The regulator said in its suit that Capital One underreported its uninsured deposits by excluding a $56 billion position between two subsidiaries, according to the report.
About the Calculation
Reuters explained the FDIC uses deposit data to calculate the special assessments it charges banks to replenish its deposit insurance fund after bank failures, the report said.
The regulator alleged in its suit that Capital One’s exclusion of those uninsured deposits resulted in the bank calculating a special assessment at $324.84 million rather than the correct $474.08 million, Reuters reported.
Original Suit
Capital One filed suit against the FDIC, alleging that the regulator overcharged the bank by $149.2 million during the special assessment.
Capital One alleged in its complaint that the FDIC inflated the assessment by incorrectly counting the $56.2 billion of positions between the bank’s subsidiaries as uninsured deposits.
Two Years of Discussions
The bank also said in its complaint that it had been in communication with the FDIC about the disagreement for two years but that the regulated continued to seek the special assessment “based on its erroneous calculation.”
As the CU Daily reported earlier, FDIC announced in May 2023 that it planned to extract $15.8 billion in extra fees over two years to recoup its losses after the rescues of Silicon Valley Bank and Signature Bank.
