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TITLE I - Troubled Assets Relief Program

Sec. 136. TEMPORARY INCREASE IN DEPOSIT AND SHARE INSURANCE COVERAGE. (2 Comments) subscribe to the comments feed

  1. FEDERAL DEPOSIT INSURANCE ACT; TEMPORARY INCREASE IN DEPOSIT INSURANCE.

    1. INCREASED AMOUNT.Effective only during the period beginning on the date of enactment of this Act and ending on December 31, 2009, section 11(a)(1)(E) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E)) shall apply with $250,000 substituted for $100,000.

    2. TEMPORARY INCREASE NOT TO BE CONSIDERED FOR SETTING ASSESSMENTS.The temporary increase in the standard maximum deposit insurance amount made under paragraph (1) shall not be taken into account by the Board of Directors of the Corporation for purposes of setting assessments under section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)).

    3. BORROWING LIMITS TEMPORARILY LIFTED.During the period beginning on the date of enactment of this Act and ending on December 31, 2009, the Board of Directors of the Corporation may request from the Secretary, and the Secretary shall approve, a loan or loans in an amount or amounts necessary to carry out this subsection, without regard to the limitations on such borrowing under section 14(a) and 15(c) of the Federal Deposit Insurance Act (12 U.S.C. 1824(a), 1825(c)).

  2. FEDERAL CREDIT UNION ACT; TEMPORARY INCREASE IN SHARE INSURANCE.

    1. INCREASED AMOUNT.Effective only during the period beginning on the date of enactment of this Act and ending on December 31, 2009, section 207(k)(5) of the Federal Credit Union Act (12 U.S.C. 1787(k)(5)) shall apply with $250,000 substituted for $100,000.

    2. TEMPORARY INCREASE NOT TO BE CONSIDERED FOR SETTING INSURANCE PREMIUM CHARGES.The temporary increase in the standard maximum share insurance amount made under paragraph (1) shall not be taken into account by the National Credit Union Administration Board for purposes of setting insurance premium charges under section 202(c)(2) of the Federal Credit Union Act

      (12 U.S.C. 1782(c)(2)).

    3. BORROWING LIMITS TEMPORARILY LIFTED.During the period beginning on the date of enactment of this Act and ending on December 31, 2009, the National Credit Union Administration Board may request from the Secretary, and the Secretary shall approve, a loan or loans in an amount or amounts necessary to carry out this subsection, without regard to the limitations on such borrowing under section 203(d)(1) of the Federal Credit Union Act (12 U.S.C. 1783(d)(1)).

  3. NOT FOR USE IN INFLATION ADJUSTMENTS. The temporary increase in the standard maximum deposit insurance amount made under this section shall not be used to make any inflation adjustment under section 11(a)(1)(F) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)(F)) for purposes of that Act or the Federal Credit Union Act.

2 comments on Sec. 136. TEMPORARY INCREASE IN DEPOSIT AND SHARE INSURANCE COVERAGE.

  • It's too bad they are not making this insurance permanent. They have known for years $100,000.00 is not enough coverage. Everyone on the news said the same thing. The credit unions cover you a little different than the banks. For inheritors they list inheritors for all your accounts, not on each account. So if I only have two inheritors for a payable on death account then I can only get up to $100,000.00 ($250,000.00) for each inheritor. Yes, you can have your individual accounts covered up to $100,000.00 ($250,000.00) for one person and also your joint accounts the same. But if you have only CD's you can have up to the same amount for each person (inheritor--POD). The owner remains the same. So I could have up to $300,000.00 ($750,000.00) for a single account and two POD accounts. Plus, I could have an additional joint account for another $100,000.00 ($250,000.00). Now, if that goes back to $100,000.00 per person that's only $400,000.00 for retirement money, which is better than nothing, but if a person likes one bank(to spread it around) instead of four it's just not enough coverage, if they have more than $400,000.00. And I really don't trust the banks to have more than $100,000.00 in each one. I hope I don't get Alzeimers to try and remember all the banks the money is in!

    posted by kay at October 7, 2008

  • Does anyone remember the last time the insurance was increased. That's right... just before the S&L debacle. Was $40K and went to $100K. The S&L's went on a "government paid" spending spree with all the excess funds and your grand-children's grand-children will be paying for that. Now we want to go to $250K.... Assuming we get through this one... I can't wait to see when this dumb idea explodes. Your IRA's were already at $250K.

    When are we going to put the burden on the investor and not on the government? Gee, what a novel concept ... only invest in companies that are sound. You can bet all the "creative financing" would go away in a heart-beat as no one would invest in companies with balance sheets too complex to understand.

    We've seen the government in action many times now.... it's not the answer.

    posted by Gregg Stock at October 8, 2008
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