emii.com: Senator Proposal May Change FDIC Bank Fee

Senator Jon Tester has proposed amendments to the financial overhaul bill, which will change the way the Federal Deposit Insurance Corporation charges banks for government-backing of deposits, The Wall Street Journal reports. The amendment will enable the FDIC to charge banks for deposit insurance based on their total assets minus average tangible equity.

The measure will generally benefit smaller banks over their larger rivals and replace the current system that bases assessments on a bank’s total deposits.

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