WASHINGTON-By a vote of 411-11, the House overwhelmingly passed the Federal Deposit Insurance Reform Act (H.R. 522) last week. "Federal deposit insurance has been a hallmark of our nation's banking system for almost 70 years," Financial Institutions and Consumer Credit Subcommittee Chairman Spencer Bachus (R-Ala.), who sponsored the bill, said. "The system has gone 23 years without a major adjustment – the longest period in its history – and the modest increases provided for in our bill are critical if deposit insurance is to maintain its relevance. The alternative is to simply let deposit insurance wither on the vine, which is an unacceptable outcome for the millions of Americans who depend upon it to protect their savings." The bill merges the Bank Insurance Fund and the Savings Association Insurance Fund; eliminates the automatic 23 basis point premium when reserves fall below 1.25%; establishes a reserve ratio range; increases individual account coverage to $130,000 and indexes future coverage to inflation; doubles coverage limits for certain retirement accounts; and increases coverage limits for municipal deposits. Credit union groups have been following the bill to ensure parity for credit unions and the National Credit Union Share Insurance Fund, which is included.