FILE – A television screen displaying financial news, including the stock price of First Republic Bank, is seen inside one of the bank’s branches in New York’s Financial District, on March 16, 2023. Customers of the bank pulled more than $100 billion in deposits out of the bank during the March crisis, as fears swirled that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.InternationalIndiaAfricaWASHINGTON (Sputnik) – US banking regulator FDIC issued a Monday report proposing three key reforms to the way deposits are insured at the country’s banks, as a means to prevent the collapse of another lender after three have already been wiped out by a banking crisis that began in March. “The recent failures of Silicon Valley Bank and Signature Bank, and the decision to approve Systemic Risk Exceptions to protect the uninsured depositors at those institutions, raised fundamental questions about the role of deposit insurance in the United States banking system,” Martin J. Gruenberg, chairman of the Federal Deposit Insurance Corp (FDIC), said in a statement. “This report is an effort to place these recent developments in the context of the history, evolution, and purpose of deposit insurance since the FDIC was created in 1933.” As part of its analysis of the banking crisis, the FDIC outlined three options for deposit insurance reforms. The first, it said, would be a limited coverage option which maintains the current deposit insurance framework insuring depositors’ money by up to a certain limit — possibly higher than the current $250,000 limit. The second would be an “unlimited coverage” option that extends unlimited deposit insurance coverage to all depositors. The third would be “targeted coverage” which offers different deposit insurance limits across account types, where business payment accounts receive significantly higher coverage than other accounts. EconomyUS Regulators Seize Troubled First Republic Bank, Name JPMorgan Chase as Buyer11:51 GMTThe report surfaced as the FDIC closed San Francisco-based First Republic Bank, the third casualty in the country’s banking crisis. Top US bank JPMorgan Chase bought assets and deposits worth over $330 billion that belonged to First Republic, which has struggled since the collapse of Silicon Valley Bank and Signature Bank in March, All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, and will have full access to all of their deposits, the FDIC said. As part of the transaction, First Republic Bank’s 84 offices in eight states will reopen as branches of JPMorgan Chase Bank.