WASHINGTON -- The Senate late Thursday passed a bill giving insured depositors as long as 10 years to claim their funds after a bank or thrift fails.

Under present law, the depositors have only 18 months to make a claim.

"This bill provides a major new consumer protection for innocent depositors who otherwise, could lose thousands of dollars through no fault of their own," said Sen. Alfonse D'Amato of New York, the banking committee's ranking Republican. He co-sponsored the bill with Sen. Donald Riegle, D-Mich., the panel's chairman.

They urged the House to take quick action.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.