PRESS RELEASE
Federal Deposit Insurance Corporation
May 7, 2003 Media Contact:
Phil Battey (202-898-6993)
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-46-2003
STATEMENT OF CHAIRMAN DONALD POWELL
FOLLOWING THE
FDIC BOARD OF DIRECTORS MEETING
MAY 7, 2003
FOR IMMEDIATE RELEASE
In our view, this morning's board meeting again underscored the need for deposit
insurance reform.
The staff projects the BIF could fall below the 1.25 threshold by the end of the year. This
means that for the third time in a row, banks face uncertainty about budgeting for
premiums. Replacing the hard target with a flexible range in a comprehensive reform
package would allow the FDIC to eliminate this uncertainty for insured institutions.
Federal Deposit Insurance Corporation
May 7, 2003 Media Contact:
Phil Battey (202-898-6993)
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-46-2003
STATEMENT OF CHAIRMAN DONALD POWELL
FOLLOWING THE
FDIC BOARD OF DIRECTORS MEETING
MAY 7, 2003
FOR IMMEDIATE RELEASE
In our view, this morning's board meeting again underscored the need for deposit
insurance reform.
The staff projects the BIF could fall below the 1.25 threshold by the end of the year. This
means that for the third time in a row, banks face uncertainty about budgeting for
premiums. Replacing the hard target with a flexible range in a comprehensive reform
package would allow the FDIC to eliminate this uncertainty for insured institutions.