Magazine article Independent Banker

Bank Notes

Magazine article Independent Banker

Bank Notes

Article excerpt

To Our Readers:

On Feb. 27, the FDIC board of directors asked for public comments on its proposed special 20-basis-point deposit insurance assessment. ICBA and thousands of its members responded with fervent opposition. In addition, ICBA outlined several policy proposals to make the deposit insurance system fairer, such as broadening the assessment base, basing assessments on assets, changing accounting rules and implementing a systemic-risk premium.

At press time, the FDIC had agreed to significantly reduce the special assessment, an adjustment that would require congressional action. ICBA continues to encourage community bankers to submit comments to the FDIC. Below are excerpts from letters community bankers sent to ICBA or the FDIC. To read more letters sent to the FDIC, visit

* Consider the Impact on Depositors

We have depositors who lived through the 1930s and knew what could happen. They planned well for their retirement, but could not plan on recent national developments which forced interest rates to their lowest level ever. This assessment will have the greatest impact on them as, once again, banks will be forced to review and adjust their interest rates down in order to survive. These developments will trickle down to all areas of our community, impacting family farms and small community business for years to come.

I understand that there are banks that received TARP funds that now wish to return them. Why can't those funds be returned (plus interest) and then directed to the FDIC reserve? What about using a special assessment on the largest "systemic risk" firms? Why can't the FDIC tap funding from the Treasury?

We seem to have no problem handing out extra money to the large firms that impact Wall Street. It would seem to me that the American public deserves the same consideration these independent large companies are receiving.

Carol K. Loschen,

Senior Vice President,

First Bank and Trust Co. …

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