FDIC eyes linking levies to bank pay

The Financial Times reports:

US banks’ contributions to a multi-billion dollar fund that insures depositors’ savings could be linked to regulators’ assessment of bank pay plans, under preliminary discussions being held by top banking watchdogs.

People familiar with the situation said that the talks were at an early stage and no decision had been made.

The Federal Deposit Insurance Corporation said on Wednesday that its board, made up of top banking regulators, would meet next Tuesday to consider proposed rules on “employee compensation”. The FDIC did not specify what it would discuss and declined to comment further.

However, one of the issues under consideration is whether regulators should seek information about lenders’ compensation policies; how they affect banks’ risk profiles and whether certain pay structures should be taken into account when assessing FDIC insurance fees, according to people briefed on the discussions.

Central planning by the FDIC.