ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release February 1, 2006 #06-07
E-mail: [email protected]

ACB APPLAUDS PASSAGE OF DEPOSIT INSURANCE REFORM LEGISLATION

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on passage of the deposit insurance reform provisions in the budget reconciliation bill:

America’s Community Bankers applauds final congressional passage today of legislation to strengthen the federal deposit insurance system. This is the most important improvement in the deposit insurance system since it was created in 1933. ACB has been a long-time supporter of reforming the system.

Of particular importance to all insured banks and savings institutions, and to the general public, is the merger of the two insurance funds. Merging the funds is based on the fundamental principle that an insurance system covering a larger number of institutions with diverse business strategies located throughout the country is the most safe and sound.

Another important feature of the legislation is its expanded role in furthering the national goal of increasing savings. The legislation recognizes that retirement accounts at insured institutions require a higher level of insurance coverage, and sets the new level at $250,000.

Finally, for banking organizations of all sizes, including community banks, the legislation takes into account that newer banks never paid into the insurance funds but derived the considerable benefits of being able to offer their customers insurance of accounts. ACB lobbied hard to reward the banks that sustained the insurance funds for decades, and the legislation provides them with credits against future assessments.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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