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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

US banks warned over uninsured depositing errors

Banks in the US have been incorrectly reporting their uninsured deposits after dozens of lenders restated figures, according to a government body.

The Federal Deposit Insurance Corporation (FDIC), citing data compiled by S&P Global Market Intelligence, said some 55 banks have revised their deposit data in the last few months amid increased scrutiny.

In some cases, the banks no longer included certain uninsured deposits that were collateralised by assets as well as those held by subsidiaries, the FDIC said.

Silicon Valley and Signature Bank, two regional banks in the US, collapsed in March for similar reasons, which has led to some of the biggest lenders being scrutinised.

Uninsured deposits are not protected by the FDIC, meaning depositors are much more likely to withdraw during a crisis.

Bank of America Corp (NYSE:BAC). updated its level of uninsured deposits by the largest dollar amount, according to S&P Global, cited in Bloomberg, while Huntington Bancshares (NASDAQ:HBAN) Inc. restated it by the largest percentage decline.

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