FDIC proposes banks pay premiums early

From NYTimes.com:

If adopted, the proposal, the agency’s third restoration plan for the fund in a year, would raise $45 billion from the banks to replenish the fund.

That would almost certainly wipe out the industry’s earnings for this year — in the first half of the year the banking industry reported $1.8 billion in income.

Regulators have told the banks that they will not have to record the prepayments as an expense until the fees would ordinarily have been due, postponing the hit to balance sheets until a time when officials believe the industry will be better able to weather the costs.

Senior officials emphasized that the plight of the fund would have no impact on insurance for bank deposits.

That obviously makes more sense than the crazy idea of the FDIC borrowing needed reserves from the banks floated a couple weeks ago. Previously posted here.

Taking over the zombie banks wouldn't hurt either.
Let the lobbying begin.