- 20 -                                         
          absent a decision by it to the contrary, would always have had              
          FDIC insurance for its deposit liabilities, including those                 
          deposit liabilities assumed from Community.  Metrobank paid the             
          fees to insure its assumed deposit liabilities with the BIF, the            
          insurance fund in which it was already a participant, rather than           
          with the SAIF, a fund with which it was unaffiliated.  Any                  
          benefit that Metrobank derived from insuring the assumed deposit            
          liabilities with the BIF, rather than the SAIF, is insignificant            
          when weighed against the primary purpose for the payment of the             
          fees.  That purpose, as explained herein, was, in the case of the           
          exit fee, to protect the integrity of the SAIF for the direct               
          benefit of the FDIC and the potential benefit of the SAIF’s                 
          participants, one of which was not Metrobank, by imposing upon              
          Metrobank a final premium for the insurance coverage that the               
          assumed deposit liabilities had received while insured by the               
          SAIF before their assumption.  The primary purpose of the                   
          entrance fee, as also explained herein, was to protect the                  
          integrity of the BIF by charging an additional first-year premium           
          for insurance coverage on the assumed deposit liabilities.                  
               It is critical that Metrobank would not have recovered any             
          portion of either fee were it to have severed its relationship              
          with the BIF.  Metrobank paid the exit fee to the SAIF as a                 
          nonrefundable, final premium for insurance that it had already              
          received.  The SAIF had insured the assumed deposit liabilities             
Page:  Previous   10   11   12   13   14   15   16   17   18   19   20   21   22   23   24   25   26   27   28   29   NextLast modified: May 25, 2011