Consumer activist Ralph Nader blasted the Federal Deposit Insurance Corp.'s proposal to lower bank premiums as an "unwarranted gift" to the industry that could jeopardize the insurance fund.

Mr. Nader and two affiliated organizations filed a comment letter with the FDIC urging the agency to let premiums continue to grow until the fund reaches an interim level of $1.63 for each $100 of insured deposits.

Over the longer term, Mr. Nader said, the FDIC should create a "prudential zone" that would permit the fund to move up as high as $2 for each $100 of deposits.

The consumer activist said the proposed "bargain basement" rates are "particularly foolhardy at a time when major surgery is being performed on bank regulations in the Congress."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.