BAC hiking fees
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Dramatic increases in FDIC fees
Starting in September, American banks began failing — huge ones like Washington Mutual, small ones like the Corn Belt Bank of Pittsfield, Ill. The failures just kept coming, one after another. In the span from Sept. 1, 2008, to April 1, 2009, 36 U.S. banks collapsed.
Each time that happens, the Federal Deposit Insurance Corp. steps in to pay for everyone's insured deposits, an amount up to $250,000 for account holders. Banks pay premiums to the FDIC for that coverage, but the fees weren't keeping up with demand for help.
In response, the FDIC raised its fees — a lot. Last year, says John Bovenzi, chief operating officer of the FDIC, the banks paid $3 billion into the insurance fund. This year, they'll pay closer to $13 billion, and maybe more.
"We're talking about a potential special assessment that could bring the total up to $20 billion for the year," Bovenzi says. "So it is a dramatic increase."
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