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Article: FDIC raising premiums to buffer impact of bank failures.(FINANCE)(Federal Deposit Insurance Corp.)
- Article from:
- San Diego Business Journal
- Article date:
- October 13, 2008
- Author:
CopyrightCOPYRIGHT 2008 CBJ, L.P. 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)
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San Diego bankers agree that more bank failures are coming, but say the nation's bank deposit insurance program should be able to withstand the hits.
"There will be more bank failures, but they'll be along the lines of a government-assisted failure that we saw in the Wachovia case," said Mike Perry, president of San Diego Trust Bank. "There is no way this financial system will be put in jeopardy."
Responding to a surge of failures this year, the Federal Deposit Insurance Corp. raised the premiums banks will have to pay starting in January.
Banks now pay on a sliding scale gauged to their safety ratings, and the latest increases will bring the ...