MEMORANDUM TO: Office of the Executive Secretary

FROM: Miguel Browne
Associate Director, Division of Insurance and Research
Federal Deposit Insurance Corporation

SUBJECT: Meeting between FDIC and Representatives of Standard & Poor’s

Please include this memorandum in the public file on the Notice of Proposed Rulemaking on the Pricing of Deposit Insurance.

On July 15, 2006, as part of the FDIC's continuing efforts to better understand risk rating systems, representatives of Standard & Poor’s met with FDIC staff to discuss methods of rating of banks on the basis of credit risk. This memorandum memorializes that meeting.

Broad elements of the NPR were briefly discussed in order provide background for the purpose of the discussion. Standard & Poor’s staff described the methods and measures they use to rate banks.