FDIC wants to raise premiums banks pay

The FDIC yesterday approved a proposed increase in premiums that will more than double the average paid by U.S. banks and thrifts next year to replenish the deposit insurance fund. The proposal, which is now open for public comment for 30 days before it can be officially adopted, will raise the average insurance premiums paid by banks and thrifts to 13.5 cents for every $100 of their deposits from the current 6.3 cents.

Rendell: Compromise on health care coverage

Gov. Ed Rendell told Senate Republicans yesterday that he'd agree to a scaled-down version of his plan to provide more health insurance coverage to Pennsylvanians who are currently uninsured. The governor initially proposed a plan that would extend coverage to up to 800,000 Pennsylvanians, but yesterday his administration said in a letter to GOP leaders that he'd be amenable to a plan that covers about 167,000 people. The Senate's work year ends today, and the governor hopes to strike a compromise before then.

700 auto dealers expected to close

The chairwoman of the National Automobile Dealers Association said the credit crunch and economic problems were likely to cause 700 auto dealers to go under this year. Speaking to the Automotive Press Association in Detroit, Annette Sykora yesterday urged fast government action on putting a $700 billion financial industry rescue plan in place. About 94 percent of vehicle buyers in the country finance their purchases, but even those with credit scores in the 700s, previously considered good credit, cannot get financing, she said. There currently are more than 20,000 auto dealers in the country, and even in good times some of them go out of business. About 430 dealerships closed last year and 295 closed in 2006, according to the NADA.

Bank encouraging customers to go green

Citizens Bank customers can get some green for going green. The bank's GreenSense program pays customers 10 cents for every paperless payment -- debit card use, online bill payment or automatic payment -- up to $120 a year. The program includes electronic statements and a debit card made from recycled plastic. The reward program deposits money directly into the customer's checking account.

Also in business ...

Architecture and design firm Burt Hill is opening an office in Phoenix. It will be the firm's 11th office in the United States. The firm already is working with Pittsburgh-based Education Management Corp. on projects that will be based in the new Phoenix office. ... Nicholas Valadja has resigned as vice president and chief information officer for the West Penn Allegheny Health System. Moving into that position will be John Foley, currently the chief technology officer for WPAHS. Mr. Foley holds an MBA from Carnegie Mellon University and a master's degree in chemical engineering from Princeton. ... General Motors Corp. said yesterday that it was looking to take out a mortgage on its towering headquarters complex in Detroit as it continues efforts to raise cash to operate in an era of tight credit.