Critical Impasse in Deposit Insurance Reform Resolved
WASHINGTON-An impasse between the House and Senate on deposit insurance reform may have been surmounted, according to a NAFCU lobbyist. "It looks like they have come to some sort of compromise that the Senate and the House can both live with," NAFCU Associate Director of Legislative Affairs Dillon Shea told reporters last week. "We're not sure actually what the terms are that they came to, but we have heard that they've been able to work something out and that they might be able to move forward on that." The key difference between the House and Senate versions of the legislation over the last couple of years has been whether to increase federal deposit insurance coverage and by how much. The credit union trades have not lobbied for the bill other than to support equal treatment between the Federal Deposit Insurance Corporation and the National Credit Union Share Insurance Fund. The Federal Deposit Insurance Reform Act (H.R. 1185), sponsored by House Financial Institutions and Consumer Credit Subcommittee Chairman Spencer Bachus (R-Ala.), passed the House earlier this year by a vote of 413-10. The Safe and Fair Deposit Insurance Act of 2005 (S. 1562), introduced July 29, has not seen Senate action yet.