WASHINGTON – A key lawmaker unveiled a bill Friday to amend the terms of the Treasury’s Troubled Asset Relief Program, which would also make the new $250,000 limit for federally insured deposits permanent.
Congress voted last year to increase coverage for deposits covered by the FDIC and by NCUA from $100,000 to $250,000 per account for one year. The new bill would extend the increased coverage until 2015, at least.
The bill, introduced by House Financial Services Committee Chairman Barney Frank, would also set aside as much $100 billion of the second-half of the $700 billion in TARP funds for foreclosure mitigation; clarify that U.S. automakers are eligible for TARP funds; and require the FDIC to rebuild its dwindling reserves.
Lawmakers have yet to express support for efforts by credit unions to gain access to TARP funding to assist troubled credit unions.
