FDIC Proposes Charging Banks According To Risk (KBE) (KRE)

The Federal Deposit Insurance Corp. (FDIC) decided on Tuesday morning to propose charging banks fees that are tied to the banks' risk taking.

The move would see fees for riskier banks increased, while fees for smaller banks and safer big banks could be lowered.

The new method would do away with the FDIC's method of relying on the scores given to banks by credit rating agencies, and instead use a new method that relates to how a bank would respond to financial stresses and how much damage the bank's collapse would do to the overall economy.

The FDIC's proposal has a sixty day comment period.

Banking ETFs were down during morning trading with the SPDR KBW Bank (NYSE: KBE) down 1.30% and the SPDR KBW Regional Banking (NYSE: KRE) down 1.76% as of 10:52 AM.