FDIC ASKING BANKS TO PREPAY DUES THRU 2012

by Retsey, Tuesday, September 29, 2009, 15:40

The FDIC Deposit Insurance Fund is about out of money - we know that. But they've come up with a scheme to pump it back up to where it was last year by collecting premiums in advance for the next 3 years AND by raising the rate! Outrageous? Oh yeah. Wonder what the banks will have to say? And just how many banks do they plan to close after they begin collecting this windfall?

Banks Tapped to Bolster FDIC Resources
FDIC Board Approves Proposed Rule to Seek Prepayment of Assessments
FDIC.gov

The Board of Directors of the Federal Deposit Insurance Corporation today adopted a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion. The FDIC Board also voted to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years.

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