FDIC's Bair calls for pre-funded "resolution authority"

03/8/2010 | Financial Times (tiered subscription model)

Federal Deposit Insurance Corp. Chairwoman Sheila Bair wants large financial institutions to pay an upfront levy to cover the cost of a major bank failure. "I think it would be for both in aggregate about $10 billion a year," she said. "It is not an insignificant amount of money but spread over the largest institutions that would be paying into it ... I don't think it would be a tremendous hit to their balance sheet." However, Bair indicated a willingness to negotiate on the matter.

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