American Banker (07/16/08) P. 3; Adler, Joe
The Federal Deposit Insurance Corp. (FDIC) is likely to charge higher premiums in 2009 for banks that depend on secured debt. Secured liabilities such as advances and covered bonds have complicated the FDIC's resolution work in the past. Agency officials will meet in September to decide premiums for next year, and they are expected to add advances as a risk factor to the FDIC's pricing system. FDIC Chairman Sheila Bair remarks, "I don't think this should impact normal use of secured liabilities, but certainly disproportionate use may be something that we do want to factor into our insurance premiums."
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