FDIC Meeting to Examine Premiums

The Federal Deposit Insurance Corp.'s board is set to meet Tuesday to discuss premiums, the agency's temporary liquidity guarantee and large-bank reporting.

While the agenda gave no details on the premium item other than that the board will discuss a "notice of proposed rulemaking on assessments," the meeting comes three months after a contentious advance notice of proposed rulemaking tying a bank's compensation structure with its insurance rate.

The January notice, which passed the board by a 3-2 vote, asked commenters how the agency's overall assessment formula could penalize or reward institutions for their compensation structures.

The agenda also gave no details about an "interim rule" dealing with the Temporary Liquidity Guarantee Program. Last month, FDIC Chairman Sheila Bair said the agency may extend one component of the program allowing banks to pay for blanket deposit coverage in business accounts. The coverage is now slated to end June 30, but small banks have called for an extension.

The board will also discuss a proposal on "reporting and planning" at large institutions.

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