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FDIC to impose 20 basis point assessment

FDIC announces one-time assessment of 20 basis points per dollar (1/500th) of domestic deposits

The FDIC Board has voted 4-1 to impose a one-time assessment on all banks of 20 basis points for every dollar of domestic deposit to replenish the Deposit Insurance Fund.  Retiring Board member John Reich was the only “no” vote on the Board.

The Deposit Insurance Fund has dropped to approximately $18.1 Billion or 0.40 percent of total insured deposits at the end of 2008.  We're told that the assessment will be due by the end of the Third Quarter, but we have not yet confirmed that fact.  We will provide bankers with more information as it becomes available.

“To say the least, this is outrageous,” said OBA President and CEO Roger Beverage.  “Our member banks have played by the rules, done things appropriately, made a profit, served their communities, and stood by while the Wall Street gang has gotten away with murder,” he continued.  “They've stood by patiently, in an effort to be supportive of their regulators and their government while their reputations have been trashed by the media and the general public has increasingly lost confidence in their profession.  They've been painted with the “bad guy” brush, and now they get to pay for the sins of the clowns that took the banking system in the United States to the edge of the abyss?  I mean, this is crazy.”

Beverage noted that banker anger is growing around the country, just like it is among members of the general public who are increasingly upset about the government spending money we don't have to reward people who brought about economic chaos.

 “As long as we're on a spending spree in Congress and “bailing” everyone else out, how about bailing out the good guys, the Oklahoma banks and the banks around the country that did it right, were honorable, played by the rules and stuck to their mission of trying to help their customers and their communities?” he said.  “Why are these guys the ones that are being punished and being painted as the bad guys?  This is just incredible.  I don't know what we're going to do yet, but we have to do something.”

OBA will continue working with the banking trade groups around the country to consider alternatives and what might be possible given this latest development.  Stay tuned.

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