[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6986 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6986

 To amend section 1821(a)(1) of title 12, United States Code, to raise 
      the maximum Federal deposit insurance coverage to $200,000.


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                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2008

  Mr. Cohen introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend section 1821(a)(1) of title 12, United States Code, to raise 
      the maximum Federal deposit insurance coverage to $200,000.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Individual Depositor and Community 
Bank Protection Act of 2008''.

SEC. 2. FINDINGS.

    (a) Deposit insurance is vital to depositor confidence and to the 
stable operation of the Nation's banking system.
    (b) The current Federal deposit insurance limit of $100,000 was set 
in 1980.
    (c) The 28-year period since 1980 is the longest period in history 
without an increase in the Federal deposit insurance limit.
    (d) Today's deposit insurance limit is economically inadequate as 
it does not reflect the steady increase in the general level of income, 
prices, and wealth in our Nation since the 1980 deposit insurance limit 
increase.
    (e) In 1935, when Federal deposit insurance was created, the 
deposit insurance coverage level was ten times per capita annual 
income. In 2000, it was only four times per capita income.
    (f) Large banks enjoy funding and deposit-gathering advantages over 
smaller banks because they are considered ``too big to fail'' and are 
protected from failure through governmental protection that is not 
afforded to smaller banks.
    (g) Community banks rely on deposit insurance to a much greater 
degree than large banks in ensuring depositor confidence. Therefore, a 
diminishment in the real protection offered by deposit insurance 
reduces vitality and competitiveness within the banking industry, as 
community banks are left at a competitive disadvantage.
    (h) An increase in the deposit insurance coverage limit is needed 
to address economic changes since 1980, to boost consumer confidence in 
the Nation's banking system, and to ensure vigorous competition in the 
Nation's banking industry.

SEC. 3. INCREASE IN DEPOSIT INSURANCE COVERAGE.

    Section 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(a)(1)), is amended--
            (1) by striking subparagraph (E) and inserting the 
        following new subparagraph:
                    ``(E) Standard maximum deposit insurance amount 
                defined.--For purposes of this chapter, the term 
                `standard maximum deposit insurance amount' means 
                $200,000, adjusted as provided under subparagraph (F) 
                after March 31, 2010.''; and
            (2) by striking subclause (F)(i)(I) and inserting the 
        following new subclause:
                                    ``(I) $200,000; and''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall become effective on the date 
of enactment of this Act.
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