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Community Banks Say Big Banks Should Pay More of FDIC's Costs

A dispute is brewing between the nation's community banks and so-called "too big to fail" banks. Steve Verdier, senior vice president of Independent Community Bankers...
March 25, 2009

A dispute is brewing between the nation's community banks and so-called "too big to fail" banks. Steve Verdier, senior vice president of Independent Community Bankers of America (ICBA), testified at a March 19 Senate Banking Committee hearing on deposit insurance issues. He said community banks see "too big to fail" banks getting billions of dollars in bailout money, while the community banks that had no hand in the financial collapse are facing rapidly escalating deposit insurance premiums and special assessments. Verdier called for Congress to level the playing field and make the riskiest institutions pay more. ICBA is calling for systemic risk premiums to be levied against "too big to fail" financial institutions to compensate taxpayers and FDIC for the increased risks these institutions pose.