
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 26, 1991                   TAG: 9102260112
SECTION: BUSINESS                    PAGE: A-4   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

FDIC HEAD SEEKS $10 BILLION LOAN

William Seidman, the nation's senior banking regulator, said Monday that he had recommended that Federal Deposit Insurance Corp. borrow $10 billion to avert the possible insolvency of the program that protects bank deposits. He also proposed that the interest on the loan be paid by raising the annual contributions of banks by 18 percent.

Seidman, chairman of the FDIC, said that by borrowing the money rather than relying solely on bank contributions, the agency would be able to raise substantially more money. Neither he nor the administration has said whether the money should be lent by the government or the banks.

The increase in the premium to be paid by the banks could take effect by June 30, he said. It would put the premium at 23 cents for every $100 in deposits, up from 19.5 cents. - The New York Times

by CNB