The Federal Deposit Insurance Corp.'s proposal to slash average premiums from 23 cents per $100 of deposits to 4.5 cents is the right thing to do. The Bank Insurance Fund approximates $25 billion, and banks paid $6 billion in assessments during 1994.

Now that the fund is replenished, banks' annual premiums could be reduced to virtually nothing, as income from the reserve balance could pay its operating expenses. In hindsight, Congress and the General Accounting Office were flat out wrong about the fund's solvency, and banks have paid for it.

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