Under Dodd-Frank, these larger regional players would contribute larger assessments to the FDIC Deposit Insurance Fund.
Keep in mind that the costs of Fannie Mae and Freddie Mac are unlimited through 2012 at least, and that the FDIC Deposit Insurance Fund is essentially broke.
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That stance disagrees with the position the FDIC itself has taken in earlier litigation and would come as a shock to most bank depositors, who assume FDIC deposit insurance is backed by the full faith and credit of the government.
Ten years ago there were approximately 12, 000 FDIC (Federal Deposit Insurance Corp.) insured Banks and Thrifts (financial institutions with a predominant consumer emphasis) in the U.S. That compares with 8, 000 banks today.
The FDIC will also expand deposit insurance for non-interest-bearing transaction accounts used by many small businesses.
Quite apart from the cost to the FDIC's deposit-insurance fund, anything close to that would prove logistically overwhelming for regulators.
Sheila Bair of the Federal Deposit Insurance Corporation (FDIC) and John Dugan, the Comptroller of the Currency, have fallen out over Ms Bair's deposit-insurance reforms.
Well if we ignore that banks themselves fund the government bureaucracy that is the FDIC, the hypothesis about deposit insurance and moral hazard is questionable.
Finally, Internet banks with the Federal Deposit Insurance Corporation (FDIC) seal are insured the same as FDIC-insured brick-and-mortar banks.
The Office of Thrift Supervision (OTS) closed IndyMac on July 11, 2008, and placed it under Federal Deposit Insurance Corporation (FDIC) receivership.
Since peaking at nearly 2.5 million in June of 2007, the number of small loans to businesses has plummeted 39 percent, data from the Federal Deposit Insurance Corporation (FDIC) shows.
These spin offs would be regulated by the Federal Deposit Insurance Commission (FDIC), which might well strongly suggest a cap on the leverage that can be used of between 10 and 15 times.
The Federal Deposit Insurance Corporation (FDIC), the bank regulator and receiver, inherits the right to sue bank directors and officers for losses, as well as their outside professional service providers, such as auditors, attorneys, and appraisers.
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One provision of the Act, Title II, creates an Orderly Liquidation Panel charged with determining if a company on the brink of collapse can be placed into receivership under the Federal Deposit Insurance Corporation (FDIC).
It conspired with the Financial Accounting Standards Board (FASB) to implement mark to market accounting despite objections from the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve and the Treasury, which said it was wrongheaded and would lead to severe credit contractions.
Back in the fall of 2005, the Federal Reserve, U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC) realized that community banks were loaning funds to the housing and real estate markets at a pace above what these regulators thought as prudent.
The FDIC also said it would provide unlimited deposit insurance for non-interest-bearing accounts, which are mainly used by small businesses to cover payrolls and other expenses.
The Fed would earn 25 basis points on the deposits (by avoiding interest payments on bank reserves), although the FDIC would lose 20 basis points of deposit insurance premiums.
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If the FDIC had additional funding they could bolster the Deposit Insurance Fund (DIF) and suspend bank assessments for community banks under a total asset threshold.
Bernanke's speech, at a conference on mortgage lending sponsored by the Federal Deposit Insurance Corp. (FDIC), comes after global stock markets swooned over new fears that the credit crisis will deepen.
Once seized, the chairman of the Federal Deposit Insurance Corp. (FDIC) has the power to decide which creditors get paid, and which do not, regardless of their rights in a normal bankruptcy proceeding.
While the already paid for insurance (yes, banks pay a premium for deposit insurance, just like at the FDIC) is invalidated.
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The Federal Deposit Bank Insurance Corp. (FDIC) is deliberating today over the proper formulation of a rule to implement section 619 of the Dodd-Frank Act, colloquially known as the Volcker Rule, and codified as 12 USC sect 1851.
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Over the years the FDIC has had a nasty habit of lowering or eliminating deposit insurance premiums when times are good and scrambling to find funds when a crisis hits.
This phenomenon would be far worse had not the FDIC extended unlimited insurance coverage to non-interest-bearing deposit accounts through the end of 2012.
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In 2002 billionaire banker Andy Beal had his Beal Bank sue the Federal Deposit Insurance Corp. in a lawsuit that accused the FDIC of originating faulty subprime mortgages to unqualified borrowers.
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Before the creation of the FDIC, banks held as much as 25% capital against their assets, however with the creation of deposit insurance those ratios moved to approximately 6% and remained there until the recent crisis.
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As the FDIC chairman, she has added programs to the agency, including ones that provide temporary liquidity guarantees, increases in deposit insurance limits and systematic loan modifications to troubled borrowers.
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