Banks Lose Deposit-Insurance Windfall Under FDIC Premiums Change

Bloomberg reports:

Some of the biggest U.S. lenders will pay more into a fund that protects customer accounts against bank failures under new rules approved by the Federal Deposit Insurance Corp.

The FDIC’s board voted unanimously today to revise how banks calculate assessments for the Deposit Insurance Fund. The change eliminates a practice that allowed as many as six banks to claim a “significant reduction in assessments” starting in the second quarter of this year, according to the FDIC.

Banks will have to use a standard approach to measure counterparty risk instead of internal models that led to skewed calculations, according to the FDIC. The change goes into effect on Jan. 1.

The great moments of cartelized banking.