WASHINGTON -- The American Bankers Association on Wednesday formally opposed a 22% premium increase planned by the Federal Deposit Insurance Corp.

In comments filed with the agency, the ABA said raising deposit insurance premiums now would thwart an economic recovery. "There is no escaping the fact that higher premiums retard bank earnings and capital growth and result in less credit at higher prices," wrote Ed Yingling, the ABA's lead lobbyist.

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