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NATION

FDIC expected to collect banks’ premiums early

WASHINGTON — The Federal Deposit Insurance Corp. is expected to take the unprecedented step of collecting billions of dollars in banks’ regular premiums early to shore up the shrinking deposit insurance fund.

The FDIC board likely will call for “prepaid” bank insurance premiums at its meeting today, three industry executives and a government official said. The banking industry prefers that option over a special emergency fee — which would be the second this year. The officials spoke on condition of anonymity because the decision has yet to be made public.

It would be the first time the FDIC has required prepaid insurance fees.

Banks to unveil changes

NEW YORK — Several of the country’s biggest banks unveiled consumer-friendly makeovers of their overdraft programs last week. The changes may be too little, too late.

Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., is the latest federal official to call for tighter regulation of overdraft programs, which have become an industry standard in recent years.

Associated Press