[Congressional Record Volume 151, Number 168 (Thursday, December 22, 2005)]
[Extensions of Remarks]
[Pages E2645-E2646]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      CONFERENCE REPORT ON S. 1932, DEFICIT REDUCTION ACT OF 2005

                                 ______
                                 

                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Sunday, December 18, 2005

  Mrs. MALONEY. Mr. Speaker, I rise in support of the deposit insurance 
provisions of this legislation which implement reforms that are long 
overdue and that I have worked on for a long time. I strongly support 
the Safe and Fair Deposit Insurance Act of 2005, which provides for 
establishment of the Deposit Insurance Fund and for the merger of the 
Bank Insurance Fund and the Savings Association Insurance Fund into it. 
I also support the Deposit Insurance Reform Act of 2005, which revises 
requirements for deposit insurance.
  Unless this bill passes before year end, community and regional 
bankers could face higher deposit insurance premiums, taking capital 
out of communities and sending it to Washington.
  Congress has been considering major reforms to the nation's federal 
deposit insurance system for several years. From the time I joined this 
Committee at the close of the S&L crisis, I have been committed to 
legislation and oversight of the banking system, including deposit 
insurance reform, that ensures we will not repeat that crisis.
  Just this year the House voted 413-10 to pass deposit insurance 
reform as a stand-alone bill, H.R. 1185. As an original cosponsor of 
H.R. 1185, as well as its predecessor in the 108th Congress, I am a 
long-time supporter of this reform bill.
  It is long past time to merge the insurance funds. Additionally, 
eliminating the 23 basis point cliff and providing a new premium system 
that takes into account the past contributions of institutions are 
major steps forward. The mechanism for determining credit for past 
contributions is based on an amendment I cosponsored with former Rep. 
Bereuter last Congress. This provision is critically important as 
premiums banks pay to the FDIC limit their ability to make loans in the 
communities they serve. This balanced amendment is now part of the 
legislation.
  In the House bill there was debate over what number should be the new 
limit of insured funds. The budget reconciliation conferees crafted a 
compromise that will provide safety and stability to our nation's 
financial system by giving the FDIC increased flexibility to administer 
deposit insurance. It will also benefit consumers by raising coverage 
levels for certain retirement accounts and adjust coverage for 
inflation.
  For over 70 years our constituents--both banks and accountholders--
have depended on the deposit insurance system to protect their savings 
and maintain the safety and

[[Page E2646]]

soundness of the banking system. We should pass this legislation to 
ensure the future of deposit insurance and our banks.

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