Providing for Consideration of H.R. 1185, Federal Deposit insurance Act of 2005
PROVIDING FOR CONSIDERATION OF H.R. 1185, FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2005 -- (House of Representatives - May 04, 2005)
Ms. MATSUI. Mr. Speaker, I thank the gentleman from Texas for yielding me this time.
Mr. Speaker, I yield myself such time as I may consume.
(Ms. MATSUI asked and was given permission to revise and extend her remarks.)
Ms. MATSUI. Mr. Speaker, I rise in support of this resolution and the underlying bill to reform the Federal Deposit Insurance. I am also very pleased that we will be able to fully debate this bill on the floor of the House under an open rule. This is only the second open rule the committee has reported this year, and I certainly hope it is a trend we will continue.
Since the creation of deposit insurance after the stock market crash in the early 1930s, Federal Deposit Insurance has created financial stability in our country for almost 70 years. Its effectiveness has been proven in our Nation's fiscal crises in the 1980s and 1990s, they were handled very differently with a far different outcome.
Also since the 1930s Congress had to evaluate deposit insurance and make changes to update this program. In 1980, Congress decided to increase the previous $40,000 coverage limit to $100,000 per account. It is common sense for us to increase the amount a deposit can be insured for, as inflation has eroded the current limits.
Increasing the limit to $130,000 is a wise decision. Indexed for inflation, the level would have risen to about $140,000. Further, this bill would increase the amount of security behind retirement accounts. This is especially important as companies eliminate their defined benefit plans and switch to providing benefits through defined contribution plans, like 401(k)s.
Deposit insurance reform has broad support. Even the FDIC staff agrees. The majority of the reforms included in this bill are the same recommendations they suggested in its April 2001 report, ``Keeping the Promise: Recommendations for Deposit Insurance Reform.''
I see no reason why we would not do this today. I urge my colleagues to support this resolution and the underlying bill.
Mr. Speaker, I reserve the balance of my time.
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