FSCS and FSA have written a joint update to firms on FSCS levies for deposit taker defaults. The letter looks at how FSCS has calculated its liabilities in respect of Bradford & Bingley, Heritable and Kaupthing Singer & Friedlander and how levies to cover costs will be raised. The letter also covers the Dunfermline default. Banks, building societies and credit unions will soon have to pay £406 million as their initial contribution to the costs of the defaults of these banks and Landsbanki. There are likely to be more levies.