[Congressional Record Volume 151, Number 106 (Friday, July 29, 2005)]
[Senate]
[Page S9477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI (for himself, Mr. Johnson, Mr. Allard, and Mr. 
        Hagel):
  S. 1562. A bill to provide for the merger of the bank and savings 
association deposit insurance funds, to modernize and improve the 
safety and fairness of the Federal deposit insurance system, and for 
other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. ENZI. Mr. President, today I rise to introduce the Safe and Fair 
Deposit Insurance Act of 2005. As many of us in this chamber know, 
reforming the operations of the Federal Deposit Insurance Corporation 
has been an important but unfinished matter before the United States 
Senate for many years. Today, we will take a step closer to a solution 
by introducing this Act.
  Wyoming is a rural State with small banks and lenders. Many people in 
Wyoming have limited choices when they need to safely deposit their 
hard-earned money. They usually depend on their local bank or credit 
union. These financial institutions in turn depend on deposit insurance 
to make sure that this money will be available in the case of a crisis. 
This is a relationship based on trust. Customers trust their bank, and 
banks trust their insurance.
  This relationship is even more important in places like Gillette, 
Wyoming. As Mayor of Gillette, I saw many coal miners retire with 
considerable pensions that reflected years of hard work in the mines 
around Gillette. However, these miners received their pensions as a 
lump sum. Their retirement accounts are often much higher than the 
maximum insurance levels under current law. In fact, more and more 
retirement accounts are reaching this upper limit, not just in Wyoming. 
Workers need a safe place to save their money and build retirement 
security. That place should be in a local financial institution that 
invests in its community and economy.
  The current FDIC system is in desperate need of improvement. Over the 
past twenty years, deposit insurance has been eroded by inflation and 
growing deposits. As newer financial institutions have sprung up, they 
have enjoyed this insurance without paying any premiums into the 
system. As time passes, current FDIC coverage continues to weaken, and 
so does the Agency's ability to respond to a deposit crisis, should one 
arise. That is why it is so important to reform the system now, before 
it is too late.
  This bill will make changes to the deposit insurance system that will 
make it more flexible and quicker to adapt to the unexpected. It will 
apply an index that will protect coverage levels against future 
inflation, and raise retirement coverage to protect earnings made over 
a lifetime of hard work. It will also make premium charges fair by 
recognizing those institutions who have paid into the system and those 
who have not. Finally, it will merge the two primary deposit insurance 
funds. This consolidation will make the system stronger and prevent 
costly premium charges that will likely be assessed if the system is 
not reformed.
  I would like to thank Senator Johnson and Chairman Shelby for their 
cooperation and hard work on this bill. I urge my colleagues to support 
this bill and look forward to its passage with all deliberate speed.
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