Financial Reform Bill grants FDIC Santa Claus status in July

Yes Amercia, Congress once again sticks it to our grandchildren by affording the financially irresponsible with a retroactive gift. The FDIC was granted Santa Claus status in July. It was no secret that the FDIC insured limit was $100,000 in 2008 as it was increased to this level in 1980. The FDIC estimates Santa Claus visits to 9,500 people this month to once again bestow financial gain to the irresponsible.

One can safely assume that a measuable number of the 9,500 receiving a visit from Donner, Prancer, Comet and Vixen (a.k.a. Sheila Bair) will show their appreciation with additional contributions prior to the November elections.

Twas the night before a July Christmas, when all through the house
Not a creature was stirring, not even a mouse.
The FDIC claim forms were hung by the chimney with care,
In hopes that St Sheila Bair soon would be there.
The depositors were nestled all snug in their beds,
While visions of large sums of free money danced in their heads.

 

FDIC Press Release (July 21, 2010)

The Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Barack Obama today permanently raised the maximum deposit insurance amount to $250,000. In addition, the Act made this increase retroactive to January 1, 2008.

The provision making the law retroactive means that the $250,000 deposit insurance amount applies to banks that failed between January 1 and October 3, 2008. These insured institutions are:

•Hume Bank, Hume, MO
•ANB Financial, N.A., Bentonville, AR
•IndyMac Bank, F.S.B., Pasadena, CA
•First Priority Bank, Bradenton, FL
•The Columbian Bank and Trust Company, Topeka, KS
•Silver State Bank, Henderson, NV

This retroactive increase has reduced the number of uninsured depositors at these failed institutions from more than 10,000 to approximately 500.

The FDIC will mail checks to uninsured depositors tomorrow, July 22, 2010. To learn more, uninsured depositors of these institutions can visit the FDIC's Web site at Link to Santa Claus Central