Posted on 12/17/2008 12:20:25 AM PST by TigerLikesRooster
FDIC Ups Deposit Insurance Premiums; ABA Cautious
By PAUL JACKSON
December 16, 2008
Most banks are set to see their deposit insurance premiums double next year, after the Federal Deposit Insurance Corp. announced Tuesday it had voted to adopt a final rule increasing risk-based assessment rates uniformly by 7 basis points (7 cents for every $100 of deposits), on an annual basis, for the first quarter of 2009.
The move comes as a spate of bank failures, including large failures tied to IndyMac Bank and Washington Mutual earlier this year, have drained the FDIC’s Deposit Insurance Fund, and forced a need to replenish reserves ahead of what is expected to be a growing string of bank failures during next year. This year, 25 banks have failed to date.
“With higher levels of bank failures, the FDIC’s resolution costs have increased significantly. This assessment increase creates a path for the fund to return to its statutorily mandated level,” said FDIC chairman Sheila Bair, in a statement. “The banking system is the bedrock of our economy and deposit insurance has played a vital role in providing stability to the system. Maintaining a strong fund positions the FDIC well to handle future challenges.”
(Excerpt) Read more at housingwire.com ...
Ping!
Troubled banks....like Citi and B of A?
They are already dealt with. I was talking about others who still limp on.
...for now...
Paulsen said yesterday that we do not have to fear another major US bank failure. (as if he can see the future)
Yeah, sure, just like housing prices were supposed to go up...forever! /sarc
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