As a quick followup to last week’s article on FDIC solvency, I just wanted to point out that the FDIC has opted to accelerate bank premiums to help build up their cash on hand from the current $10B level.
Under the just-announced plan, the FDIC will require banks to prepay their 2010-2012 assessments when they pay their Q4 2009 premiums. There will also be a three basis point (0.03%) increase in premiums starting in 2011.
From what I’ve heard, the increased cushion will amount to roughly $10B per year of accelerated premiums, or $30B total. Of course, this also means that the FDIC won’t be collecting any money from 2010-2012 unless they change the rules.