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 May 4, 2005 #05-22
E-mail: [email protected]

ACB STATEMENT ON DEPOSIT INSURANCE REFORM

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Statement by Diane Casey-Landry, president and CEO, America‘s Community Bankers, on passage today by the House of deposit insurance reform legislation:

America‘s Community Bankers commends the House for again overwhelmingly passing legislation to make a number of important reforms to the nation‘s deposit insurance system. ACB has been a long-time supporter of the bill‘s merger of the Bank Insurance Fund and the Savings Association Insurance Fund into a stronger fund that will better protect depositors; elimination of a rigid 23 basis point “cliff”; rebates when the insurance fund is adequately capitalized; and credits against future premiums for those that capitalized the insurance funds in 1996.

ACB strongly supports the bill‘s increased coverage for retirement savings accounts, giving consumers piece of mind that their accounts will have additional protection to $260,000, indexed for inflation. This is especially important as Individual Retirement Accounts and 401(k) accounts grow in value, and in light of the desire of community banks to offer insured certificates of deposit as an option for Social Security individual investment accounts.

ACB will continue to advocate a special premium on the uninsured money-market accounts that may be shifted into insured accounts — the “free riders” that adversely affect the reserve ratio.

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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