Justia Regulation Tracker

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[Federal Register: October 2, 2009 (Volume 74, Number 190)]
[Notices]               
[Page 51061-51062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02oc09-82]                         

[[Page 51061]]

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Part III

Federal Deposit Insurance Corporation

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12 CFR Part 327

 Amendment of Federal Deposit Insurance Corporation Restoration Plan; 
Notice; Prepaid Assessments; Proposed Rule

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FEDERAL DEPOSIT INSURANCE CORPORATION

 
Federal Deposit Insurance Corporation Amended Restoration Plan

Tuesday, September 29, 2009.
AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Amendment of Federal Deposit Insurance Corporation Restoration 
Plan.

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    On October 7, 2008, the FDIC established a Restoration Plan for the 
Deposit Insurance Fund (the DIF or the Fund), which was implemented 
immediately. 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. On February 27, 2009, the FDIC concluded that the problems 
facing the financial services sector and the economy at large 
constituted extraordinary circumstances and amended the Restoration 
Plan and extended the time within which the reserve ratio would return 
to 1.15 percent from five to seven years (Amended Restoration Plan).
    In May 2009, Congress amended the statutory provision governing 
establishment and implementation of a Restoration Plan to allow the 
FDIC eight years to bring the reserve ratio back to 1.15 percent, 
absent extraordinary circumstances. The FDIC has concluded that the 
Amended Restoration Plan should be extended from seven to eight years 
as is allowed under current law.
    Therefore, the FDIC amends the Amended Restoration Plan adopted on 
February 27, 2009, as follows:
    1. The period of the Amended Restoration Plan is extended to eight 
years.
    2. The FDIC will not impose any further special assessments under 
the final rule adopted in May 2009.
    3. The FDIC plans to maintain assessment rates at their current 
levels through the end of 2010. The FDIC is immediately adopting a 
uniform 3 basis point increase in assessment rates effective January 1, 
2011, to ensure that the fund returns to 1.15 percent within the 
Amended Restoration Plan period of eight years.
    4. At least semi-annually hereafter, the FDIC will update its loss 
and income projections for the Fund. If necessary to return the reserve 
ratio to 1.15 percent, the Board will increase assessment rates prior 
to the end of the eight-year period, following notice-and-comment 
rulemaking.
    5. This Amended Restoration Plan shall be implemented immediately.

    By order of the Board of Directors.

    Dated at Washington, DC, this 29th of September, 2009.

    Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. E9-23802 Filed 9-30-09; 11:15 am]

BILLING CODE 6714-01-P