Bid Again To Boost Deposit InsuranceCoverage

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WASHINGTON - (04/28/05) -- The House Financial ServicesCommittee again approved a bill Wednesday to reform the depositinsurance reform system by raising the coverage on all federallyinsured bank and credit union accounts to $130,000, from thecurrent $100,000, and index future increases in coverage to therate of inflation. The bill would also double the coverage onretirement accounts to $260,000. The bill, which now goes to a voteby the full House, passed the House almost two years ago, to theday, but died when the Senate refused to act on it. The creditunion lobby has been reluctant to push the bill but insists if thecoverage is raised for bank deposits then it must also be increasedfor credit unions, too.

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