The Federal Deposit Insurance Corp. may revise a $1.4 trillion debt-insurance program to address complaints that it would spur an exodus from the $250 billion market for overnight loans between banks.
The FDIC is considering charging different fees depending on the maturity of the debt, instead of its previous plan for a flat fee. Companies including JPMorgan Chase & Co. and Bank of America Corp. said the original proposal threatened to make the overnight federal funds market too costly compared with alternatives such as direct loans from the Federal Reserve.
``We are definitely thinking through how to respond to some of the concerns that have been raised,'' Art Murton, director of the FDIC's insurance and research division, said in an interview. ``Complexity is somewhat inevitable. We're doing our best to take away unnecessary confusion.''
The FDIC today announced it would take up the issue at a board meeting set for 2 p.m. on Nov. 21. The agenda calls for the final rule to be discussed and voted on. read more
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