#shorts On 3/30/2023, during press briefing, a reporter asked White House press secretary Karine Jean-Pierre, “I wanted to ask why the Biden administration wants the FDIC to spare community banks from the special assessment to cover, you know, the insuring — insurance deposits for Silicon Valley and Signature Banks. I mean, the default is that all banks pay. Why not broaden the base?

KJP: So I just want to — are you asking about a particular bank in — a particular bank here?

Reporter: No, I mean — I mean, the Biden administration earlier was talking about the FDIC sparing community banks from the special assessment to cover the costs of insuring deposits at Silicon Valley and Signature Banks. Since the the default generally is that all banks will pay, to broaden the base — the FDIC does have some discretion, I understand. But I — I wanted to understand why is the administration encouraging that.

KJP: So, I’ll say this: Look, the D- — the DIF — the DIF has more than enough to cover — right? — any — any Silicon Valley Bank and Signature Bank deposits that cannot be paid using funds from the banks or the sale of their assets. And the FDIC has said any losses that the DIF will be — will be recovered by special assessment on the banks, not the taxpayers.

We think it’s important to make sure that these community banks, these regional banks, are also put in a strong place, in a resil- — are also resilient as well. And so I’m going to leave it there. I’m not going to go into specifics onto what the FDIC is doing. That is something for them to make that decision.

As you know, DIF is an important fund — insurance fund that the big banks pay into. But I’m not going to get into specifics on — to their — to their process.

other clips of this published longer video is here: https://youtu.be/xdV4V8d7nxA
Karine Jean-Pierre Has Absolutely No Idea How To Respond To Question On Community Banks