Deposit Plan Will Cost Banks More

[girl gone mad]

Source: New York Times

...

When banks were flush, most of them paid nothing for a golden government guarantee. Bank failures were so rare that, for a decade, the Federal Deposit Insurance Corporation waived most of the premiums it normally would have collected to insure bank deposits.

But now the government plans to raise the amount of deposit insurance that consumers have, leaving the F.D.I.C. — and potentially taxpayers — in a bind.

After forgoing premiums from 1996 to 2006, the agency must now turn to struggling banks and ask them to pay more, putting more pressure on the industry. If a large number of banks fail, the F.D.I.C. may have to turn to the Treasury for more money, forcing taxpayers to foot the bill.

“It’s unfortunate that we didn’t have more time to build up the fund in the good times,” said Sheila C. Bair, the F.D.I.C. chairwoman, in an interview Wednesday. “It is what is, and we are dealing with the situation.”



Read more: http://www.nytimes.com/2008/10/02/business/02deposit.html?_r=1&oref=slogin

---

"Unfortunate"? :eyes:

Here's our heads up on the next big bail out.

[lapfog_1]

1. Kinda hard to build up the fund in the "good times"

if you decide to drop the collection of the premiums.

Idiots.

[truthisfreedom]

2. There was never much in there anyway. What, about 70B? Now what is it? 30B?

Pony up, banks. You should have put that money in there voluntarily.

[Demeter]

3. What Idiot Decided Not To Collect?

Was it Greenscam?

[harmonicon]

4. I would sure as hell like to know

If any of these people are still involved with government, the FDIC, or any sort of monetary or banking agency or corporation, heads should roll.

[ingac70]

5. There is no excuse for them waiving premiums...

dumbasses!