The Federal Deposit Insurance Corporation (FDIC) has approved a 2024 operating budget of $2.96 billion, a 6.3% decrease from the previous year’s budget. The move has raised concerns over the FDIC’s ability to protect depositors and consumers amid rising large bank failures.
According to the FDIC, the Receivership Funding component of the budget declines by $475 million, or 57.5%, while the Ongoing Operations budget increases by $275 million (12%), from 2023. The budget also authorizes 189 new positions, most to perform the FDIC’s core mission responsibilities, including increased supervision of large banks.
“This proposed budget was formulated following this year’s three large regional bank failures and reflects the lessons learned from those failures,” said Chairman Martin J. Gruenberg. “Of particular importance, the proposed budget includes substantial new resources to perform increased supervisory monitoring of large insured institutions on an ongoing basis to support early detection of emerging risks and quicker action to ensure that banks are taking the necessary steps to mitigate such risks.”
Chairman Gruenberg added, “The proposed budget provides additional resources to address potential risks to depositors and consumers of emerging technologies, such as the use of artificial credit underwriting models. We will also continue to take decisive action to address misleading representations about what products FDIC insurance covers and whether those products are in fact insured by the FDIC.”
The move to cut funding has raised concerns among lawmakers and industry experts, who fear it may compromise the FDIC’s ability to effectively regulate large banks and protect depositors. “This budget cut is a recipe for disaster,” said one expert. “The FDIC needs to be able to regulate these banks effectively, not cut corners and risk the stability of our financial system.”
The FDIC’s 2024 operating budget was approved by the Board of Directors on December 20, 2023. The full budget and exhibits can be found on the FDIC’s website. The agency will continue to monitor developments in the banking sector and take decisive action to protect depositors and consumers.
In a statement, Chairman Gruenberg emphasized the importance of the FDIC’s mission and the need for effective regulation of large banks. “The FDIC’s core mission is to maintain stability and public confidence in the US financial system,” he said. “We will continue to work tirelessly to ensure that our regulatory efforts are effective and that we are able to identify and mitigate potential risks to depositors and consumers.”
Related Federal Cases
- FDIC, Failing to Meet Community Needs, Washington DC, 2026
- FDIC Insists on $69.9B Net Income, Conceals $677M Loss, Washington … · Ohio
- FDIC Unveils Stress Test Scenarios, WASHINGTON DC, 2026 · Alabama
- Travis Hill Sworn in as FDIC Chairman, Washington DC, 2025
- FDIC Unveils New Office of Supervisory Appeals, Washington D.C., 2023 · Washington
Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂÂ
ðŸâ€ÂÂÂÂ’ Get the grimiest stories delivered weekly. Subscribe free →
Browse More
All Federal Districts →All Districts →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News