The Globe and Mail reports in its Friday, Jan. 19, edition that several U.S. banks reported a plunge in fourth quarter profits on Thursday, hurt by a drop in interest income and charges tied to replenishing a deposit insurance fund. A Reuters dispatch to The Globe reports that higher payouts on deposits to retain customers from chasing high-yielding alternatives have resulted in an industry-wide contraction in net interest margins for the banks that had until recently benefited from the U.S. Federal Reserve's rate hikes. Potential Fed rate cuts this year will likely further dent margins this year, some banks have warned. Meanwhile, most U.S. banks are also paying the Federal Deposit Insurance Corporation a fee to refill its insurance fund, used to safeguard customer deposits in case of bank failures. On Thursday, another top regulator announced plans for new short-term liquidity rules to help lenders respond to bank runs. Investors are closely monitoring deposit cost trends in bank earnings reports this quarter. Reuters reported earlier this month that analysts fear 2024 earnings per share at 11 U.S. regional banks will drop from a year earlier, mostly due to increased deposit costs.