“Near-Zero Short-Term Interest Rates May Go Lower Under FDIC Rule”
“A planned change in deposit insurance fees for U.S. banks may lower already near-zero short-term interest rates, according to strategists at Barclays Plc, Bank of America Merrill Lynch and the Royal Bank of Canada.
The Federal Deposit Insurance Corp. proposed broadening the base for deposit insurance fees to banks’ liabilities, rather than domestic deposits. The plan is designed to fund depositor protection while shifting the burden to larger lenders whose reliance on riskier funding may pose greater threats to the financial system.” Read more.
“Near-Zero Short-Term Interest Rates May Go Lower Under FDIC Rule”
Liz Capo McCormick
Bloomberg, January 7, 2011
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