The Federal Deposit Insurance Corp. sued Capital One Financial (COF), alleging that the bank didn’t pay the full amount it should have to help replenish the FDIC’s coffers after the failure of Silicon Valley Bank and Signature Bank in Marcy 2023, according to a media report on Tuesday.
Last June, the FDIC required 111 banks to pay a special assessment totaling $18.6B to refill the Deposit Insurance Fund after it was depleted by the failures of the two large regional banks. Banks with less than $5B of assets weren’t charged the assessment.
The FDIC claims that Capital One (COF) underreported its uninsured deposits by excluding a $56B position between two subsidiaries from regulatory reports, Reuters reported. The latest suit came after Capital One (COF) in September accused the FDIC of trying to charge $149.2M too much.
In the FDIC suit, filed on Monday, the regulator said the $56B led Capital One (COF) to calculate a $324.8M special assessment, instead of the $474.1M that the FDIC said should have been assessed.
In July, the bank said it disagreed with the FDIC’s conclusion that it underreported its uninsured deposits and estimated that the possible additional special assessment fees beyond its existing accrual is ~$200M.
“There are no time machines when it comes to special assessments, and the subsidiary’s funds were deposits held at the bank for which the subsidiary already received the benefit of FDIC deposit insurance,” the FDIC said.
Capital One didn’t immediately respond to Seeking Alpha’s request for comment.
Capital One (COF) stock rose 0.6% in midafternoon trading.