Kansas Banker Says FDIC Rates Skyrocketing

By: AP
By: AP

LAWRENCE, Kan. (AP) _ A leader in the Kansas banking industry says some banks' FDIC insurance premiums are 30 times higher now than they were just six weeks ago.

Earl McVicker, the head of Hutchinson-based Central Financial Corp., said his banks' premiums last year were $20,000 and could soon reach $400,000 to $600,000 because of new rates set by FDIC. He said his company budgeted $220,000 for premiums this year.

Speaking to Rotarians in Lawrence Monday, McVicker saidcommunity banks are safe, secure and largely free from the worries that have plagued embattled Citibank, Goldman Sachs and AIG.

McVicker was chairman of the American Bankers Association in 2006-07, has testified before Congress and conferred with Federal Reserve Chairman Ben Bernanke.

McVicker's Central Bank and Trust Co. has three locations in Hutchinson and two in Wichita.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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