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 November 1, 2001 #01-76
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS URGES CONGRESS TO INCREASE DEPOSIT INSURANCE ON RETIREMENT ACCOUNTS

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WASHINGTON, D.C. — America’s Community Bankers urged Congress today to substantially increase federal deposit insurance coverage on retirement accounts at banks and savings institutions.

In a statement submitted to the Senate Financial Institutions Subcommittee, ACB said an increase is needed “to provide adequate coverage for the variety of tax-advantaged savings accounts that have grown substantially over the years, as well as prepare for any Social Security reform, including self-directed accounts should Congress adopt that concept.”

ACB said increasing the insurance coverage for retirement accounts “would be a welcome addition to a deposit insurance reform proposal that would merge the insurance funds and give the FDIC flexibility to deal with the strains imposed by extraordinary growth in insured deposits at a few institutions.”

ACB has been on record in support of increasing coverage on retirement accounts since January when it submitted comprehensive recommendations for reform to the FDIC. ACB testified most recently on Aug. 2 on the need for increased coverage on retirement accounts.

In its statement today, ACB commended FDIC Chairman Donald Powell for his recent strong endorsement of increased coverage for retirement accounts in testimony before the House Financial Institutions Subcommittee on Oct. 17. ACB agreed with Powell’s recommendation of a phase-in of the increase. This would mitigate any adverse effect on the FDIC’s reserve ratio, ACB said.

ACB’s Statement is ATTACHED.

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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