Bank Stocks May Get Hit by FDIC Fees

The Federal Deposit Insurance Corp.'s bank insurance fund is being depleted by a steady drumbeat of bank failures, forcing it to assess higher fees to the banks when they can least afford it.

Forty-two U.S. banks and thrifts have failed since the start of 2008, including 17 already this year. Combined with the FDIC's decision in October to increase its coverage to accounts up to $250,000, from the previous $100,000, the situation has put a strain on the fund.

The fund totaled $18.9 billion at the end of 2008, declining $15.7 billion in the fourth quarter. As a result, the FDIC said it would charge banks up to an extra 20-basis point assessment on deposits, in addition to deposit insurance premiums already being collected, beginning Sept. 30. ...