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Article: Banks want to cancel new FDIC Insurance policy; federal agency to hike fees on cash-strapped industry.(REGULATION)(Federal Deposit Insurance Corp.)
- Article from:
- Los Angeles Business Journal
- Article date:
- March 16, 2009
CopyrightCOPYRIGHT 2009 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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AT a time when many banks are struggling with rising losses and dwindling cash levels, the Federal Deposit Insurance Corp. is ready to sharply hike the insurance fees paid by banks, which are fuming.
Bankers, particularly those from smaller institutions, have been vocal with their displeasure over the fee increases--which could total several million dollars for each of them--and which they said will burden even the healthiest.
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"It's a fairly significant charge for us," said David Malone, chief executive of Community Bank in Pasadena. "It's not going to cause us to lose money, but it's a rather significant chunk."
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