Congress Boosts Deposit InsuranceCoverage

WASHINGTON - (12/20/05) -- The House voted late Sunday night toincrease the coverage for deposit insurance from the current$100,000 per account to $130,000, sending the bill on to thePresident, who is expected to sign it into law. The bill will alsoindex the maximum coverage per account to the rate of inflationstarting in 2009. The measure also more than doubles the coveragefor retirement accounts, like IRAs or 401ks, to $250,000. The billwill also merge the bank and thrift insurance funds, something thathas been debated for more than a decade, and will empower the FDICto pay a dividend to insured institutions, like NCUA does, if thebank/thrift fund is determined to be over-capitalized.