Summary
The board of the Federal Deposit Insurance Corp, in mid-July 2006, voted to put out for comment a three-part plan for implementing the deposit insurance legislation enacted in February of this year. Two pieces of the proposal are simple and should be non-confrontational. The FDIC board proposes to design a new logo for insured banks and thrifts to display. The board also proposes to keep the target reserve ratio at the 1.25 level, even though the new law allows the board to go higher. The third part is the rub - and it will rub many banks the wrong way. For many years, 95 percent of the banks have paid no FDIC premium, because they were rated in the lowest-risk category. That will end when the new proposal is adopted. The explicit intent of the new legislation was that everyone pays something. Other items of interest to the banking community are discussed including credit union charter conversions, flood insurance, and Internet gambling.
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Extract
President's Report
NEW FDIC PREMIUM STRUCTURE PROPOSED
The board of the Federal Deposit Insurance Corp., in mid-July, voted to put out for comment a three-part plan for implementing the deposit insurance legislation enacted in February of this year. Two pi...See the full content of this document
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