California U.S. Representatives on Thursday introduced an amendment to the financial reform bill that would extend the FDIC $250K deposit insurance cap back in time to cover depositors of IndyMac. This was reported in Thursday's Pasadena Star-News.IndyMac Bank failed
on July 2008 before the temporary $250K cap took effect. Many IndyMac depositors lost half of their uninsured deposits.
Hopefully, these reps are also considering the amendment to make the $250K cap permanent. As I mentioned yesterday
, the Senate amendment to make the $250K cap permanent didn't make it into the bill.
Hat tip to the reader who emailed me this news.