President Signs Deposit Insurance Reform into Law
WASHINGTON-Legislation to modernize the FDIC and update its coverage limits was signed into law Feb. 8. President George W. Bush signed The Deficit Reduction Omnibus Reconciliation Act of 2005, which included the deposit insurance reform legislation, according to CUNA Legislative Affairs Manager Linda Haer. The bill allows the FDIC to set the insurance coverage levels every five years in line with inflation beginning in 2010 for the start of 2011, merge the Bank and Savings Association Insurance Funds, and increase retirement account coverage to $250,000, among other things. Then on Feb. 15, the president signed The Federal Deposit Insurance Reform Conforming Amendments Act of 2005, which provides parity to NCUA as far as retirement deposit insurance coverage levels and the NCUA logo. It also asks for several studies, including regarding possible future reforms to the deposit insurance system, excess coverage, and privatization of deposit insurance.