FDIC Says it Will Insure LLCs, National Banks Could Be Next

WASHINGTON-The Federal Deposit Insurance Corporation issued a final rule last week providing state banks organized as limited liability companies federal deposit insurance. Also at the meeting, Comptroller of the Currency John Hawke said that he will be looking into the issue as it relates to national banks chartered as limited liability association, according to FDIC Public Information Officer Rosemary George. As an LLC, a bank could receive preferential tax treatment by avoiding taxation at the corporate and stockholder levels without the current 75-shareholder restriction of a Subchapter S charter. Credit unions are hoping this will take the steam out of bankers' arguments that credit unions should be taxed.