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FDIC May Link Pay to Fees

Joanna Chung and Francesco Guerrera, writing at ft.com, describe proposals being discussed by the FDIC about how to assess dues from member banks.  These fees are used by the FDIC to fund the costs of managing bank failures.  All the recent bank failures have depleted the FDIC resolution account, forcing the GSE (government sponsored enterprise) to borrow from the government to continue handling bank failures.

Two of the factors reported to be under consideration include:

*  Requiring higher fees for banks with compensation schemes based on risk.

*  Offering lower fees for banks with bonus "claw backs" when risks backfire.


Disclosure: No stock mentioned.