|
|
Article: FDIC slashing premiums by 83% for most banks. (Federal Deposit Insurance Corp.)
- Article from:
- American Banker
- Article date:
- February 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Washington - The Federal Deposit Insurance Corp. on Tuesday proposed slashing premiums to 4 cents for nearly 91% of the industry in the second half of 1995.
This 83% reduction from the current rate of 23 cents per $100 of domestic deposits will save the banking industry nearly $5 billion a year.
But it also sets up the potentially explosive political situation in which thrifts will pay six times what banks are charged for the government's backing.
Beyond the rate differential, a separate decision the FDIC made Tuesday could endanger the banking industry's premium reduction.
Confirming a 1992 opinion, the FDIC ruled that premiums paid ...