Federal regulators are raising the fees paid by U.S. banks and thrifts, and levying an emergency premium to rebuild a deposit insurance fund depleted by a cascade of bank failures.
The Federal Insurance Deposit Corp. says it now expects bank failures will cost the insurance fund around $65 billion through 2013, up from an earlier estimate of $40 billion.
The FDIC says the economic crisis, which has caused dozens of recent bank failures and the insurance fund to drop to its lowest level in a quarter-century, warranted extending the plan to rebuild the insurance fund from five years to seven.
(Copyright 2009 by The Associated Press. All Rights Reserved.)