Foreign Deposits May Be Assessed
WASHINGTON - A bill taking shape in the Senate Banking Committee would impose a special assessment on foreign deposits and other uninsured liabilities to bolster the Bank Insurance Fund.
The special assessment, which could raise as much as $3 billion, would be levied to cover the first $10 billion in borrowings needed for the insurance fund. Additional borrowing would be paid for by the general assessment on domestic deposits.
Opposed by Key Republican
The provision appears to enjoy considerable support on the committee, but it is drawing the opposition of Sen. Jake Garn, R-Utah. Sen. Garn, the panel's ranking Republican, believes it would hinder the competitiveness of U.S. banks overses.
A bill sponsored by Sen. James Sasser, D-Tenn., and Nancy L. Kassebaum, R-Kan., that would bring foreign deposits into the assessment base, is cosponsored by 25 of the Senate's 100 members.
