WASHINGTON — The Federal Deposit Insurance Corp. is letting hundreds of banking companies change their applications for the debt guarantee program in response to confusion over its cost.

At least 500 banks, thrifts, and holding companies mistakenly signed up for an advanced version of the program, thinking they would receive the added benefits for free. The FDIC said it would let all those entities — and as many as 300 more the agency has contacted — participate in just the standard guarantee program, therefore escaping the extra charges.

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.