Deposit Insurance Overhaul Bill IsDelayed

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WASHINGTON - (12/28/05) A bill that would lift the amountcovered by deposit insurance will not see any action until afterthe turn of the year. The deposit insurance reform bill primarilyaddresses the FDIC, but will also affect the National Credit UnionShare Insurance Fund. Passage of the bill has been delayed becauseof an adjustment to its language that has meant it must return tothe House for another vote. The bill, which was included in theSenate as part of a huge budget bill, only passed the upper Housebecause Vice President Dick Cheney cast a tie-breaking vote. Thebill would increase coverage for retirement accounts to $250,000and give NCUA and FDIC authority to adjust coverage levels of allaccounts to keep pace with inflation, starting in 2010. The billwould also give the insurance funds more flexibility in chargingpremiums and would merge the bank and thrift insurance funds into anew Deposit Insurance Fund.

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