Like car owners who live in high-crime neighborhoods, commercial banks are facing ever higher premiums for insurance. Last week the Federal Deposit Insurance Corporation moved to bolster the reserves of its Bank Insurance Fund by proposing a total hike of 7.5 cents next year in the premium that commercial banks must pay on every $100 in insured deposits. The boost is not because of an upswing in bank robberies. Rather, the bad real estate loans that bankrupted the now defunct Federal Savings and Loan Insurance Corporation are placing a serious drain on its former counterpart, the once seemingly invulnerable FDIC.
FDIC...
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