Thursday, May 27, 2010 - 10:25 AM
From CUNA News Now
WASHINGTON (5/27/10)--A permanent increase in the deposit insurance limit is likely on the backburner, said American Banker (May 26). Some lawmakers hoped to address the limit--temporarily at $250,000 per account until 2013--in the regulatory reform bill the Senate passed May 20. Some financial observers say the limit should be permanent because the previous $100,000 limit had not been changed in 30 years and returning to that level could trigger a liquidity shock. Sen. Ben Cardin (D-Md.) had introduced an amendment in the regulatory reform bill to make the increase permanent, but it failed. Some observers say the increase will be added by those working on the House and Senate reform bills. Financial institutions were granted the $250,000 limit under S. 896, "Helping Families Save Their Homes Act of 2009." Credit unions also were granted coverage up to $250,000 per account, a move that the Credit Union National Association supported ...
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