The FDIC Board of Directors just concluded their special meeting to discuss the Special Assessment Final Rule.  The FDIC Board elected to change the following:[more]

  1. Reduce the rate used to calculate the special assessment;
  2. Change the base used to calculate the special assessment;
  3. Cap the amount of the special assessment
  4. Reduce the rate used to calculate any additional special assessment or assessments that become necessary;
  5. Change the base used to calculate any additional special assessments or assessments that become necessary;
  6. Cap the amount of any such additional special assessment; and,
  7. Terminate authority to impose any additional special assessment under this Final Rule on January 1, 2010.

This reduce the initial proposed assessment of 20 points (.20/per $100 of insured domestic deposits) to .05bp of total assets minus capital.  This change is substantial for community banks, since now the majority of the recapitalization will be placed on larger regional and national megabanks.

To read the final rule, visit http://www.fdic.gov/news/board/May22no2.pdf