Federal Deposit Insurance Reform Act of 2005
FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2005 -- (House of Representatives - May 04, 2005)
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Mr. MEEKS of New York. Mr. Chairman, I would like to recognize, first, Chairman Oxley and Ranking Member Frank for their work to bring this overdue bill to the floor of the House. This is not the first time that this bill has passed through committee with broad bipartisan support, but hopefully this time we can work with the other body to make this law.
The financial services industry is one of the driving engines of our economy, and the banking industry in particular is not only a key source of financing for consumer purchases like homes and cars or business purchases such as equipment and facilities. It is also the means by which the Federal Reserve implements monetary policy to stabilize our economy. Considering the vital role that banks, both big and small, play in our economy, it is equally important to make certain that the Federal insurance which backs these institutions is operating under the most efficient rules.
H.R. 1185 will merge the Bank Insurance Fund and the Savings Association Insurance Fund into one strong fund. It will increase deposit insurance on individual accounts from $100,000 to $130,000, increases coverage on certain retirement accounts to $260,000, and increases coverage on in-state municipal deposits to $2 million.
One of its most important aspects is that it provides for a 50 percent discount in the assessment rate for deposits attributable to lifeline deposit accounts, something, and I take my hat off to her, that the gentlewoman from the great State of California (Ms. Waters) has been working on for many, many years in support of people who are traditionally unbanked.
Lastly, let me thank the gentleman from Alabama (Mr. Bachus) and the gentlewoman from Oregon (Ms. Hooley), who introduced the bill, and encourage Members from both sides of the aisle to vote "yes" on final passage.
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