President / CEO
First State Bank & Trust Company, Inc.
100 West Third Street
P.O. Box 18
Caruthersville, MO 63830-0018
Phone 573-333-1700 Ext. 1105
I am writing to express my concern and aggravation regarding the fact
that the Debt Guarantee Program is subject to an assessment of 75bp
annualized. This is a decision that will take much consideration for us to
make because of the enormous cost for the program. As CFO, I am convinced
that the fee is too high relative to current market rates, including Fed
Funds. If banks have to pay 75bp to the FDIC to be guaranteed, we will
witness additional banks not being able to survive. It is critical that the
program fees be reduced!