Originally Posted by audreyh1
Hmmmm. Some representative for all the small banks was on TV recently complaining about the increase in FDIC fees when it's only the "top 20 banks" who are getting all the protection/bailout. Seems like plenty of small ones are going by the wayside too.
I don't think it's specifically a small-versus-large thing as much as it is the fact that even the conservatively managed banks are going to get unfairly screwed with the more reckless ones that caused the mess in the FDIC.
It's like a very safe driver being charged the same auto insurance rate as someone who has an accident and couple of DWIs, and if the insurer is on the verge of insolvency because of the reckless drivers costing them too much, the rates rise on everyone by the same amount regardless of driving record.
I don't think we'd tolerate an auto insurance pricing model like that, but we seem to be okay with it for bank deposit insurance.