Article: Midsize Banks Rail Against Paying for Goliaths' Blunder.(Community Banking: Reform Spotlight Takes Systemic Shift)

Byline: Bonnie McGeer

The latest proposal to deal with systematic risk rankles bankers in the industry's middle tier, who are being asked to stand ready to shoulder the costs of rescuing much larger - and very different - institutions.

"If Goldman Sachs does something screwy, why should I have to pay?" asked Gerald H. Lipkin, the chairman, president and chief executive officer of the $14.2 billion-asset Valley National Bancorp in Wayne, N.J. "You're going to hit me on the head because some regulator didn't do his job?"

At issue is the idea of having the Federal Deposit Insurance Corp. charge a fee to all institutions with more than $10 billion ...

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