The Federal Deposit Insurance Corp. will meet Friday to finalize a rule implementing its temporary guarantee of bank debt and deposits that do not bear interest.
The agency issued an interim rule Oct. 23 detailing the mechanics of its plan — meant to help stabilize the credit markets — to protect checking accounts for a year and senior unsecured debt for three years after issuance.
Under the rule, banks would pay 75 basis points for the debt coverage. Institutions opting for the extra deposit coverage would pay a 10-basis-point premium for checking deposits above the standard $250,000 account limit.
In comment letters, several institutions argued that the fees were too high.
All institutions are receiving the extra coverage for free until Dec. 5. Banks and thrifts must notify the FDIC if they want to opt out of the program after that date.
