Update at a Glance
November 3, 2009
Impacts of FDIC Three-year Pre-pay Plan for FDIC and FICO
Recently, the FDIC (Federal Deposit Insurance Corporation) announced a Three-year Pre-pay Plan. BNY Mellon wants you to be aware that this measure will impact our company’s position on FDIC rates. Please read this notice promptly and share it with others in your organization who may benefit from receiving it.
- Banks will be billed standard FDIC charges in 2010, 2011 and 2012, based on average ledger balance as reported on the bank’s September 2009 Call Report. Although BNY Mellon will pre-pay in December 2009, we will pass along related FDIC charges on your monthly average positive ledger balances over time. We will not request that you prepay.
- The rate that is used to calculate standard FDIC charges is based on the quality scores of each bank and will remain the same through the December 2010 activity period. BNY Mellon will use 12 bps as the annual rate charged monthly during this period.
- The annual rate will increase by 3 bps effective January 2011 through the December 2017 activity period. BNY Mellon will charge an annual rate of 15 bps during this period, on a monthly basis.
- The FDIC intends to discontinue the Special Assessment charge going forward; however, they reserve the right to reinstitute the charge, if needed. BNY Mellon will pass along any related charges.
- BNY Mellon is "opting out" of the six-month TAGP extension, January 2010 through June 2010; therefore, BNY Mellon will not be charging a quarter end TAGP fee related to the extension.
- Calculation methods for FICO charges will continue as they are today.
- If the FDIC changes any rates, method of calculation, time periods, etc. related to its bank charges, or imposes new charges, BNY Mellon will likewise change our charges to you without further notice.
If you have any questions, please read BNY Mellon's press release on this subject, or contact your BNY Mellon Relationship officer.