25639Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations
reserves and the depository institution’s
contractual clearing balance, if any, and
then subtracting from this product the
depository institution’s clearing balance
allowance, if any; or
(2) $50,000, minus the depository
institution’s clearing balance allowance,
if any. Any carryover not offset during
the next period may not be carried over
to subsequent periods.
§ 204.7 [Removed]
■ 8. Section 204.7 is removed.
§ 204.6 [Redesignated as § 204.7]
■ 9. Section 204.6 is redesignated as
§ 204.7.
■ 10. New § 204.6 is added to read as
follows:
§ 204.6 Charges for reserve deficiencies.
(a) Deficiencies in a depository
institution’s required reserve balance,
after application of the carryover
provided in § 204.5(e), are subject
reserve-deficiency charges. Federal
Reserve Banks are authorized to assess
charges for deficiencies in required
reserves at a rate of 1 percentage point
per year above the primary credit rate,
as provided in § 201.51(a) of this
chapter, in effect for borrowings from
the Federal Reserve Bank on the first
day of the calendar month in which the
deficiencies occurred. Charges shall be
assessed on the basis of daily average
deficiencies during each maintenance
period. Reserve Banks may, as an
alternative to levying monetary charges,
after consideration of the circumstances
involved, permit a depository
institution to eliminate deficiencies in
its required reserve balance by
maintaining additional reserves during
subsequent reserve maintenance
periods.
(b) Reserve Banks may waive the
charges for reserve deficiencies except
when the deficiency arises out of a
depository institution’s gross negligence
or conduct that is inconsistent with the
principles and purposes of reserve
requirements. Decisions by Reserve
Banks to waive charges are based on an
evaluation of the circumstances in each
individual case and the depository
institution’s reserve maintenance
record. For example, a waiver may be
appropriate for a small charge or once
during a two-year period for a
deficiency that does not exceed a certain
percentage of the depository
institution’s required reserves. If a
depository institution has demonstrated
a lack of due regard for the proper
maintenance of required reserves, the
Reserve Bank may decline to exercise
the waiver privilege and assess all
charges regardless of amount or reason
for the deficiency.
(c) In individual cases, where a
Federal supervisory authority waives a
liquidity requirement, or waives the
penalty for failing to satisfy a liquidity
requirement, the Reserve Bank in the
District where the involved depository
institution is located shall waive the
reserve requirement imposed under this
part for such depository institution
when requested by the Federal
supervisory authority involved.
(d) Violations of this part may be
subject to assessment of civil money
penalties by the Board under authority
of Section 19(1) of the Federal Reserve
Act (12 U.S.C. 505) as implemented in
12 CFR part 263. In addition, the Board
and any other Federal financial
institution supervisory authority may
enforce this part with respect to
depository institutions subject to their
jurisdiction under authority conferred
by law to undertake cease and desist
proceedings.
PART 209—ISSUE AND
CANCELLATION OF FEDERAL
RESERVE BANK CAPITAL STOCK
(REGULATION I)
■ 10. The authority citation for part 209
continues to read as follows:
Authority: 12 U.S.C. 2222, 248, 282, 286–
288, 321, 323, 327–328, 333, and 466.
■ 11. § 209.2 is amended by revising
paragraph (c)(1) to read as follows:
§ 209.2 Banks desiring to become member
banks.
* * * * *
(c) * * *
(1) General rule. For purposes of this
part, a national bank or a State bank is
located in the Federal Reserve District
that contains the location specified in
the bank’s charter or organizing
certificate, or as specified by the
institution’s primary regulator, or if no
such location is specified, the location
of its head office, unless otherwise
determined by the Board under
paragraph (c)(2) of this section.
* * * * *
By order of the Board of Governors of the
Federal Reserve System, May 22, 2009.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E9–12431 Filed 5–28–09; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 327
RIN 3064–AD35
Special Assessments
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: Pursuant to section 7(b)(5) of
the Federal Deposit Insurance Act, 12
U.S.C. 1817(b)(5), the FDIC is adopting
a final rule to impose a 5 basis point
special assessment on each insured
depository institution’s assets minus
Tier 1 capital as of June 30, 2009. The
amount of the special assessment for
any institution, however, will not
exceed 10 basis points times the
institution’s assessment base for the
second quarter 2009 risk-based
assessment. The special assessment will
be collected on September 30, 2009. The
final rule also provides that if, after June
30, 2009, the reserve ratio of the Deposit
Insurance Fund is estimated to fall to a
level that the Board believes would
adversely affect public confidence or to
a level that shall be close to or below
zero at the end of any calendar quarter,
the Board, by vote, may impose
additional special assessments of up to
5 basis points on all insured depository
institutions based on each institution’s
total assets minus Tier 1 capital
reported on the report of condition for
that calendar quarter. Any single
additional special assessment will not
exceed 10 basis points times the
institution’s assessment base for the
corresponding quarter’s risk-based
assessment. The earliest possible date
for imposing any such additional
special assessment under the final rule
would be September 30, 2009, with
collection on December 30, 2009. The
latest possible date for imposing any
such additional special assessment
under the final rule would be December
31, 2009, with collection on March 30,
2010. Authority to impose any
additional special assessments under
the final rule terminates on January 1,
2010.
DATES: Effective Date: June 30, 2009.
FOR FURTHER INFORMATION CONTACT:
Munsell W. St. Clair, Acting Chief, Fund
Analysis and Pricing Section, Division
of Insurance and Research, (202) 898–
8967; Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801 or
Sheikha Kapoor, Senior Attorney, Legal
Division, (202) 898–3960; Donna
Saulnier, Manager, Assessment Policy
Section, Division of Finance (703) 562–
6167.
VerDate Nov<24>2008 15:25 May 28, 2009 Jkt 217001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\29MYR1.SGM 29MYR1
tjames on PRODPC75 with RULES
reserves and the depository institution’s
contractual clearing balance, if any, and
then subtracting from this product the
depository institution’s clearing balance
allowance, if any; or
(2) $50,000, minus the depository
institution’s clearing balance allowance,
if any. Any carryover not offset during
the next period may not be carried over
to subsequent periods.
§ 204.7 [Removed]
■ 8. Section 204.7 is removed.
§ 204.6 [Redesignated as § 204.7]
■ 9. Section 204.6 is redesignated as
§ 204.7.
■ 10. New § 204.6 is added to read as
follows:
§ 204.6 Charges for reserve deficiencies.
(a) Deficiencies in a depository
institution’s required reserve balance,
after application of the carryover
provided in § 204.5(e), are subject
reserve-deficiency charges. Federal
Reserve Banks are authorized to assess
charges for deficiencies in required
reserves at a rate of 1 percentage point
per year above the primary credit rate,
as provided in § 201.51(a) of this
chapter, in effect for borrowings from
the Federal Reserve Bank on the first
day of the calendar month in which the
deficiencies occurred. Charges shall be
assessed on the basis of daily average
deficiencies during each maintenance
period. Reserve Banks may, as an
alternative to levying monetary charges,
after consideration of the circumstances
involved, permit a depository
institution to eliminate deficiencies in
its required reserve balance by
maintaining additional reserves during
subsequent reserve maintenance
periods.
(b) Reserve Banks may waive the
charges for reserve deficiencies except
when the deficiency arises out of a
depository institution’s gross negligence
or conduct that is inconsistent with the
principles and purposes of reserve
requirements. Decisions by Reserve
Banks to waive charges are based on an
evaluation of the circumstances in each
individual case and the depository
institution’s reserve maintenance
record. For example, a waiver may be
appropriate for a small charge or once
during a two-year period for a
deficiency that does not exceed a certain
percentage of the depository
institution’s required reserves. If a
depository institution has demonstrated
a lack of due regard for the proper
maintenance of required reserves, the
Reserve Bank may decline to exercise
the waiver privilege and assess all
charges regardless of amount or reason
for the deficiency.
(c) In individual cases, where a
Federal supervisory authority waives a
liquidity requirement, or waives the
penalty for failing to satisfy a liquidity
requirement, the Reserve Bank in the
District where the involved depository
institution is located shall waive the
reserve requirement imposed under this
part for such depository institution
when requested by the Federal
supervisory authority involved.
(d) Violations of this part may be
subject to assessment of civil money
penalties by the Board under authority
of Section 19(1) of the Federal Reserve
Act (12 U.S.C. 505) as implemented in
12 CFR part 263. In addition, the Board
and any other Federal financial
institution supervisory authority may
enforce this part with respect to
depository institutions subject to their
jurisdiction under authority conferred
by law to undertake cease and desist
proceedings.
PART 209—ISSUE AND
CANCELLATION OF FEDERAL
RESERVE BANK CAPITAL STOCK
(REGULATION I)
■ 10. The authority citation for part 209
continues to read as follows:
Authority: 12 U.S.C. 2222, 248, 282, 286–
288, 321, 323, 327–328, 333, and 466.
■ 11. § 209.2 is amended by revising
paragraph (c)(1) to read as follows:
§ 209.2 Banks desiring to become member
banks.
* * * * *
(c) * * *
(1) General rule. For purposes of this
part, a national bank or a State bank is
located in the Federal Reserve District
that contains the location specified in
the bank’s charter or organizing
certificate, or as specified by the
institution’s primary regulator, or if no
such location is specified, the location
of its head office, unless otherwise
determined by the Board under
paragraph (c)(2) of this section.
* * * * *
By order of the Board of Governors of the
Federal Reserve System, May 22, 2009.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E9–12431 Filed 5–28–09; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 327
RIN 3064–AD35
Special Assessments
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
SUMMARY: Pursuant to section 7(b)(5) of
the Federal Deposit Insurance Act, 12
U.S.C. 1817(b)(5), the FDIC is adopting
a final rule to impose a 5 basis point
special assessment on each insured
depository institution’s assets minus
Tier 1 capital as of June 30, 2009. The
amount of the special assessment for
any institution, however, will not
exceed 10 basis points times the
institution’s assessment base for the
second quarter 2009 risk-based
assessment. The special assessment will
be collected on September 30, 2009. The
final rule also provides that if, after June
30, 2009, the reserve ratio of the Deposit
Insurance Fund is estimated to fall to a
level that the Board believes would
adversely affect public confidence or to
a level that shall be close to or below
zero at the end of any calendar quarter,
the Board, by vote, may impose
additional special assessments of up to
5 basis points on all insured depository
institutions based on each institution’s
total assets minus Tier 1 capital
reported on the report of condition for
that calendar quarter. Any single
additional special assessment will not
exceed 10 basis points times the
institution’s assessment base for the
corresponding quarter’s risk-based
assessment. The earliest possible date
for imposing any such additional
special assessment under the final rule
would be September 30, 2009, with
collection on December 30, 2009. The
latest possible date for imposing any
such additional special assessment
under the final rule would be December
31, 2009, with collection on March 30,
2010. Authority to impose any
additional special assessments under
the final rule terminates on January 1,
2010.
DATES: Effective Date: June 30, 2009.
FOR FURTHER INFORMATION CONTACT:
Munsell W. St. Clair, Acting Chief, Fund
Analysis and Pricing Section, Division
of Insurance and Research, (202) 898–
8967; Christopher Bellotto, Counsel,
Legal Division, (202) 898–3801 or
Sheikha Kapoor, Senior Attorney, Legal
Division, (202) 898–3960; Donna
Saulnier, Manager, Assessment Policy
Section, Division of Finance (703) 562–
6167.
VerDate Nov<24>2008 15:25 May 28, 2009 Jkt 217001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\29MYR1.SGM 29MYR1
tjames on PRODPC75 with RULES
25640 Federal Register / Vol. 74, No. 102 / Friday, May 29, 2009 / Rules and Regulations
1 Section 7(b)(3)(E) of the Federal Deposit
Insurance Act, 12 U.S.C. 1817(b)(3)(E).
2 74 FR 61598 (October 16, 2008).
3 74 FR 9564 (Mar. 4, 2009).
4 74 FR 9525 (Mar. 4, 2009). 5 74 FR 9338 (Mar. 4, 2009).
6 The Helping Families Save Their Homes Act of
2009, discussed below, extends the temporary
deposit insurance coverage limit increase to
$250,000 (from the permanent limit of $100,000 for
deposits other than retirement accounts) through
the end of 2013. The legislation allows the FDIC to
factor in the increase in the coverage limit for
assessment purposes. Institutions do not currently
report the amount of deposits insured above
$100,000 (except for retirement accounts). Staff
estimates that when institutions begin reporting
estimated insured deposits that reflect the higher
coverage limit (probably in their September 30,
2009 reports of condition), projected reserve ratios
(provided they are positive) will be somewhat lower
than they would be using the $100,000 coverage
limit. Taking the coverage limit increase into
account would not, of course, convert a positive
reserve ratio to a negative one.
7 Also, according to staff’s projections, the
combination of the 5 basis points special
assessment (without any additional special
assessments) and regular assessments should return
the reserve ratio to 1.15 percent in 2016, one year
later than required by the amended Restoration
Plan, which requires that the reserve ratio return to
1.15 percent by the end of 2015. It should be noted
that the Restoration Plan allows the FDIC the
flexibility to adjust assessment rates as needed
throughout the plan period to ensure that the fund
reserve ratio reaches 1.15 percent within seven
years (loss and income projections must be updated
at least semiannually).
SUPPLEMENTARY INFORMATION:
I. Background
Recent and anticipated failures of
FDIC-insured institutions resulting from
deterioration in banking and economic
conditions have significantly increased
losses to the Deposit Insurance Fund
(the fund or the DIF). The reserve ratio
of the DIF declined from 1.22 percent as
of December 31, 2007, to 0.40 percent
(preliminary) as of December 31, 2008,
and is expected to decline further by
March 31, 2009. Twenty-five
institutions failed in 2008, and the FDIC
projects a substantially higher rate of
institution failures this year and in the
next few years, leading to a further
decline in the reserve ratio. (As of May
15, 2009, 33 institutions had failed in
2009.) Because the fund reserve ratio
fell below 1.15 percent as of June 30,
2008, and was expected to remain below
1.15 percent, the Federal Deposit
Insurance Reform Act of 2005 (the
Reform Act) required the FDIC to
establish and implement a Restoration
Plan that would restore the reserve ratio
to at least 1.15 percent within five years,
absent extraordinary circumstances.1
On October 7, 2008, the FDIC
established a Restoration Plan for the
DIF.2 The Restoration Plan called for the
FDIC to set assessment rates such that
the reserve ratio would return to 1.15
percent within five years. The plan also
required the FDIC to update its loss and
income projections for the fund and, if
needed to ensure that the fund reserve
ratio reached 1.15 percent within five
years, increase assessment rates. The
FDIC amended the Restoration Plan on
February 27, 2009, and extended the
time within which the reserve ratio
must be returned to 1.15 percent from
five years to seven years due to
extraordinary circumstances.3 The FDIC
also adopted a final rule (the
assessments final rule) that, among
other things, set quarterly initial base
assessment rates at 12 to 45 basis points
beginning in the second quarter of
2009.4 However, given the FDIC’s
estimated losses from projected
institution failures, these assessment
rates will not be sufficient to return the
fund reserve ratio to 1.15 percent within
seven years and are unlikely to prevent
the DIF fund balance and reserve ratio
from falling to near zero or becoming
negative in 2009.
II. Interim Rule With Request for
Comment
On February 27, 2009, the FDIC, using
its statutory authority under section
7(b)(5) of the FDI Act (12 U.S.C.
1817(b)(5)), adopted an interim rule
with request for comment imposing a 20
basis point special assessment on June
30, 2009, to be collected on September
30, 2009, at the same time that the
regular quarterly risk-based assessments
for the second quarter of 2009 are
collected.5 Under the interim rule with
request for comment, the assessment
base for the special assessment was the
same as the assessment base for the
second quarter risk-based assessment.
The interim rule with request for
comment also provided that, after June
30, 2009, if the reserve ratio of the DIF
is estimated to fall to a level that the
Board believes would adversely affect
public confidence or to a level which
shall be close to or below zero at the end
of any calendar quarter, the Board, by
vote, may impose a special assessment
of up to 10 basis points as of the end
of any such quarter based on each
institution’s assessment base calculated
pursuant to 12 CFR 327.5 for the
corresponding assessment period.
III. Comments Received
The FDIC sought comments on every
aspect of the interim rule with request
for comment, with six particular issues
posed. The FDIC received over 14,000
comments, which are discussed in
section V below.
IV. Final Rule
The final rule differs in several ways
from the interim rule with request for
comment. The final rule imposes a 5
basis point special assessment on each
institution’s assets minus Tier 1 capital
as reported on the report of condition as
of June 30, 2009, rather than a 20 basis
point special assessment on each
institution’s assessment base for the
second quarter 2009 risk-based
assessment, as provided in the interim
rule with request for comment. The
amount of the special assessment for
any institution, however, will not
exceed 10 basis points times the
institution’s assessment base for the
second quarter 2009 risk-based
assessment. The special assessment will
be collected on September 30, 2009.
The FDIC estimates that the total
amount collected under the special
assessment will approximately equal the
amount that would have been collected
by imposing approximately a 7 and one-
third basis point special assessment on
the aggregate industry assessment base
for the second quarter 2009 risk-based
assessment. For all institutions, the
assessment rate in the final rule will
result in a much smaller assessment
than under the interim rule with request
for comment.
According to the FDIC’s projections,
the special assessment, combined with
the rates adopted in the final assessment
rule in February 2009, should result in
maintaining a year-end 2009 fund
balance and reserve ratio that are
positive, albeit close to zero.6, 7 It is
important, however, to recognize the
inherent uncertainty in these
projections. Given the importance of
maintaining a positive fund balance and
reserve ratio, it is probable that an
additional special assessment will be
necessary, although the amount and
timing of such a special assessment is
uncertain.
Therefore, the final rule also provides
that, if, after June 30, 2009, but before
January 1, 2010, the reserve ratio of the
DIF is estimated to fall to a level that the
Board believes would adversely affect
public confidence or to a level which
shall be close to or below zero at the end
of any calendar quarter, the Board, by
vote, may impose an additional special
assessment of up to 5 basis points as of
the end of any such quarter on all
insured depository institutions based on
each institution’s total assets minus Tier
1 capital as reported on the report of
condition for that calendar quarter. Any
single additional special assessment
will not exceed 10 basis points times the
institution’s assessment base for the
corresponding quarter’s risk-based
VerDate Nov<24>2008 15:25 May 28, 2009 Jkt 217001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\29MYR1.SGM 29MYR1
tjames on PRODPC75 with RULES
1 Section 7(b)(3)(E) of the Federal Deposit
Insurance Act, 12 U.S.C. 1817(b)(3)(E).
2 74 FR 61598 (October 16, 2008).
3 74 FR 9564 (Mar. 4, 2009).
4 74 FR 9525 (Mar. 4, 2009). 5 74 FR 9338 (Mar. 4, 2009).
6 The Helping Families Save Their Homes Act of
2009, discussed below, extends the temporary
deposit insurance coverage limit increase to
$250,000 (from the permanent limit of $100,000 for
deposits other than retirement accounts) through
the end of 2013. The legislation allows the FDIC to
factor in the increase in the coverage limit for
assessment purposes. Institutions do not currently
report the amount of deposits insured above
$100,000 (except for retirement accounts). Staff
estimates that when institutions begin reporting
estimated insured deposits that reflect the higher
coverage limit (probably in their September 30,
2009 reports of condition), projected reserve ratios
(provided they are positive) will be somewhat lower
than they would be using the $100,000 coverage
limit. Taking the coverage limit increase into
account would not, of course, convert a positive
reserve ratio to a negative one.
7 Also, according to staff’s projections, the
combination of the 5 basis points special
assessment (without any additional special
assessments) and regular assessments should return
the reserve ratio to 1.15 percent in 2016, one year
later than required by the amended Restoration
Plan, which requires that the reserve ratio return to
1.15 percent by the end of 2015. It should be noted
that the Restoration Plan allows the FDIC the
flexibility to adjust assessment rates as needed
throughout the plan period to ensure that the fund
reserve ratio reaches 1.15 percent within seven
years (loss and income projections must be updated
at least semiannually).
SUPPLEMENTARY INFORMATION:
I. Background
Recent and anticipated failures of
FDIC-insured institutions resulting from
deterioration in banking and economic
conditions have significantly increased
losses to the Deposit Insurance Fund
(the fund or the DIF). The reserve ratio
of the DIF declined from 1.22 percent as
of December 31, 2007, to 0.40 percent
(preliminary) as of December 31, 2008,
and is expected to decline further by
March 31, 2009. Twenty-five
institutions failed in 2008, and the FDIC
projects a substantially higher rate of
institution failures this year and in the
next few years, leading to a further
decline in the reserve ratio. (As of May
15, 2009, 33 institutions had failed in
2009.) Because the fund reserve ratio
fell below 1.15 percent as of June 30,
2008, and was expected to remain below
1.15 percent, the Federal Deposit
Insurance Reform Act of 2005 (the
Reform Act) required the FDIC to
establish and implement a Restoration
Plan that would restore the reserve ratio
to at least 1.15 percent within five years,
absent extraordinary circumstances.1
On October 7, 2008, the FDIC
established a Restoration Plan for the
DIF.2 The Restoration Plan called for the
FDIC to set assessment rates such that
the reserve ratio would return to 1.15
percent within five years. The plan also
required the FDIC to update its loss and
income projections for the fund and, if
needed to ensure that the fund reserve
ratio reached 1.15 percent within five
years, increase assessment rates. The
FDIC amended the Restoration Plan on
February 27, 2009, and extended the
time within which the reserve ratio
must be returned to 1.15 percent from
five years to seven years due to
extraordinary circumstances.3 The FDIC
also adopted a final rule (the
assessments final rule) that, among
other things, set quarterly initial base
assessment rates at 12 to 45 basis points
beginning in the second quarter of
2009.4 However, given the FDIC’s
estimated losses from projected
institution failures, these assessment
rates will not be sufficient to return the
fund reserve ratio to 1.15 percent within
seven years and are unlikely to prevent
the DIF fund balance and reserve ratio
from falling to near zero or becoming
negative in 2009.
II. Interim Rule With Request for
Comment
On February 27, 2009, the FDIC, using
its statutory authority under section
7(b)(5) of the FDI Act (12 U.S.C.
1817(b)(5)), adopted an interim rule
with request for comment imposing a 20
basis point special assessment on June
30, 2009, to be collected on September
30, 2009, at the same time that the
regular quarterly risk-based assessments
for the second quarter of 2009 are
collected.5 Under the interim rule with
request for comment, the assessment
base for the special assessment was the
same as the assessment base for the
second quarter risk-based assessment.
The interim rule with request for
comment also provided that, after June
30, 2009, if the reserve ratio of the DIF
is estimated to fall to a level that the
Board believes would adversely affect
public confidence or to a level which
shall be close to or below zero at the end
of any calendar quarter, the Board, by
vote, may impose a special assessment
of up to 10 basis points as of the end
of any such quarter based on each
institution’s assessment base calculated
pursuant to 12 CFR 327.5 for the
corresponding assessment period.
III. Comments Received
The FDIC sought comments on every
aspect of the interim rule with request
for comment, with six particular issues
posed. The FDIC received over 14,000
comments, which are discussed in
section V below.
IV. Final Rule
The final rule differs in several ways
from the interim rule with request for
comment. The final rule imposes a 5
basis point special assessment on each
institution’s assets minus Tier 1 capital
as reported on the report of condition as
of June 30, 2009, rather than a 20 basis
point special assessment on each
institution’s assessment base for the
second quarter 2009 risk-based
assessment, as provided in the interim
rule with request for comment. The
amount of the special assessment for
any institution, however, will not
exceed 10 basis points times the
institution’s assessment base for the
second quarter 2009 risk-based
assessment. The special assessment will
be collected on September 30, 2009.
The FDIC estimates that the total
amount collected under the special
assessment will approximately equal the
amount that would have been collected
by imposing approximately a 7 and one-
third basis point special assessment on
the aggregate industry assessment base
for the second quarter 2009 risk-based
assessment. For all institutions, the
assessment rate in the final rule will
result in a much smaller assessment
than under the interim rule with request
for comment.
According to the FDIC’s projections,
the special assessment, combined with
the rates adopted in the final assessment
rule in February 2009, should result in
maintaining a year-end 2009 fund
balance and reserve ratio that are
positive, albeit close to zero.6, 7 It is
important, however, to recognize the
inherent uncertainty in these
projections. Given the importance of
maintaining a positive fund balance and
reserve ratio, it is probable that an
additional special assessment will be
necessary, although the amount and
timing of such a special assessment is
uncertain.
Therefore, the final rule also provides
that, if, after June 30, 2009, but before
January 1, 2010, the reserve ratio of the
DIF is estimated to fall to a level that the
Board believes would adversely affect
public confidence or to a level which
shall be close to or below zero at the end
of any calendar quarter, the Board, by
vote, may impose an additional special
assessment of up to 5 basis points as of
the end of any such quarter on all
insured depository institutions based on
each institution’s total assets minus Tier
1 capital as reported on the report of
condition for that calendar quarter. Any
single additional special assessment
will not exceed 10 basis points times the
institution’s assessment base for the
corresponding quarter’s risk-based
VerDate Nov<24>2008 15:25 May 28, 2009 Jkt 217001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\29MYR1.SGM 29MYR1
tjames on PRODPC75 with RULES