Moving FDIC insurance to an asset-based assessment system: Evidence from the special assessment of 2009

► The financial crisis caused regulatory authorities to bailout large financial institutions in unprecedented ways, extending the federal coverage beyond insured deposits. ► The FDIC in the spring of 2009 implemented an one-time special assessment program that assessed premiums based on total liabilities. ► The assessment of total liabilities increased the assessments for large institutions to the point that the FDIC imposed a cap on the size of the assessment, which favored certain large financial institutions. ► This paper provides evidence on the special assessment of 2009.