These provisions would be coupled with rebates for the stronger entities when the fund approaches what we recommend be a higher upper end of a target range than the FDIC has suggested, and surcharges when the Fund trends below what we suggest be a lower end of a target range. The FDIC also recommends that the rebates not be uniform for the stronger entities.
Rather, the FDIC argues that rebates should be smaller for those banks that have paid premiums for only short periods or that have in the past paid premiums that are not commensurate with their present size and hence FDIC exposure. The devil, of course, is in the details. But this latter proposal makes considerable sense, and the Board endorses it.