‘Misguided’ FDIC proposals for bank charges alarm market participants

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The US Federal Deposit Insurance Corporation (FDIC) is changing how it charges banks for cover in the case of a bank collapse, but proposals to levy advance charges that are proportionate to risk have sparked concerns.

“We would charge more as risks were being accumulated versus the current system, which penalises banks much more immediately prior to their failure or when they are in trouble and they can least afford it,” says Marc Steckel, associate director at the FDIC Division of Insurance and

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