The Federal Deposit Insurance Reform Act of 2005 (Title II, subtitle B of Pub.L. 109-171, 110 Stat. 9, enacted February 8, 2006, with a companion statute, Federal Deposit Insurance Reform Conforming Amendments Act of 2005, Pub.L. 109-173, 119 Stat. 3601, enacted February 15, 2006), is an act of the United States Congress that regulates banks. It contained a number of changes to the Federal Deposit Insurance Corporation (FDIC).
- It raised the limit on deposit insurance for retirement accounts from $100,000 to $250,000, and indexed the amount to inflation.
- It merged the two deposit insurance funds that the FDIC had been administering separately since the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). FIRREA, among many things, abolished the former Federal Savings and Loan Insurance Corporation (FSLIC), and created a new insurance fund, Savings Association Insurance Fund (SAIF), to be administered by the FDIC. The other longer standing fund that the FDIC was administering was the Bank Insurance Fund (BIF). SAIF and BIF were combined constituting the Depositor Insurance Fund (DIF).
- It provided credits to banks that had paid into the deposit insurance funds in the early 1990s in the aftermath of the savings and loan crisis.
- It requires that the FDIC issue rebates to the banking industry should the level of the deposit insurance fund rise above 1.50% of total insured deposits.
|
Famous quotes containing the words federal, deposit, insurance, reform and/or act:
“Prestige is the shadow of money and power. Where these are, there it is. Like the national market for soap or automobiles and the enlarged arena of federal power, the national cash-in area for prestige has grown, slowly being consolidated into a truly national system.”
—C. Wright Mills (1916–1962)
“A real life, a life that leaves a deposit in the shape of something alive.... It’s difficult to say what makes a life a real life.... You could also say it depends on a person being identical with himself.”
—Max Frisch (1911–1991)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,—if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892–?)
“Let us reform our schools, and we shall find little reform needed in our prisons.”
—John Ruskin (1819–1900)
“I have witnessed, and greatly enjoyed, the first act of everything which Wagner created, but the effect on me has always been so powerful that one act was quite sufficient; whenever I have witnessed two acts I have gone away physically exhausted; and whenever I have ventured an entire opera the result has been the next thing to suicide.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)