WASHINGTON--U.S. banking regulators proposed Tuesday that banks prepay three years of fees to help cover the rising cost of bank failures, facing a $100-billion cleanup bill through 2013.
Banks would prepay $45 billion of regular quarterly assessments under the plan, but not have to recognize the hit to their earnings until the fees are normally due.
The five-member board of the Federal Deposit Insurance Corp voted unanimously to put the proposal out for 30 days of public comment.
Regulators have been exploring ways to replenish the fund that safeguards bank deposits without putting a huge burden on healthy banks.
FDIC staff raised their expectations for bank failure costs from 2009 through 2013 to $100 billion, up from a previous estimate of $70 billion.
This is so outrageous. These banks were too big to fail. Where will the money come from that people are waiting for in loans? Was it ever even considered to put aside some of that stimulus money for insurance purposes? When the government says to big to fail, I say let it fail and go back to the free market policy.... Our President is considering throwing more money at the first time buyers program.
Well, isn't that what got us in this mess to begin with?? How are car sales after the clunker scheme??