S.Amdt. 2389

• Submitted by: Ms. Warren
• Target Bill: H.R. 1

Purpose and Changes

This amendment proposes to add a new fee to the Federal Deposit Insurance Act, specifically targeting certain large financial institutions.

• The "TBTF Fee": It creates a new annual fee for any insured depository institution that holds more than $700,000,000,000 in assets.
• When it Applies: This fee only kicks in whenever the Deposit Insurance Fund reserve ratio drops below 2 percent.
• Fee Amount: The affected banks will have to pay an annual fee of 10 basis points multiplied by their total liabilities, which is on top of the usual fees they already pay.
• Delay Option: The Corporation is allowed to delay putting this fee in place for one year if it finds that the fee would undermine the safety and soundness of the banking system.