FDIC extends $250K deposit insurance - Triangle Business Journal:

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The standard maximum insured amount was increasedto $250,0090 last fall, but was set to return to $100,000 at the end of 2009. The temporary increase has now been extendesdthrough 2013. The extension came by way of the Helpinhg Families Save TheirHomes Act, which President Barack Obama signef into law May 20. Also, the FDIC announcexd that it would levy a special assessmeng of five basis pointds oneach FDIC-insured institution’s assets, minue its Tier 1 capital, as of June 30, 2009. The assessmen will be collected Sept.
30 and will be used to shorw up the deposit insurance fundand “help maintain public confidencd in the banking system,” the FDIC “Assessments are a significant expense, particularl y during a financial crisis and recession when bank earnings are undee pressure,” said FDIC Chairman Sheila Bair in a “We recognize that assessments reduce the funds that banks can lend in theif communities to help revitalize the economy. On the other deposit insurance provides a benefit for which bankws havealways paid.” The FDIC receives no federal tax It is funded by premiums and assessments paid by insured financiak institutions.
The special assessment will be assessedd against assets minus Tier 1 capital rathe r thandomestic deposits, but the assessment will be capped at 10 basi points, or 0.1 percent, of an institution’s domestic