Proceedings, Debates of the U.S. Congress
FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2003
(Extensions of Remarks - April 03, 2003)
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[Extensions of Remarks] [Page E680] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2003 ______ speech of HON. MAX SANDLIN of texas in the house of representatives Wednesday, April 2, 2003 The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 522) to reform the Federal deposit insurance system, and for other purposes: Mr. SANDLIN. Mr. Chairman, I rise today in strong support of H.R. 522, the Federal Deposit Insurance Reform Act of 2003. I appreciate the efforts of Chairman Oxley and Ranking Member Frank to bring this important bill to the floor, and I thank them for their continued support for this legislation. I would also like to thank Chairman Bachus and Ranking Member Waters of the Financial Institutions Subcommittee for their leadership on this bill. In my East Texas district, deposit insurance aids community bankers in attracting and maintaining core deposits, which are often used locally to fund mortgages, development projects, student loans and small businesses. H.R. 522 will increase deposit insurance coverage from $100,000 to $130,000 and will index this limit for inflation in future years. With a declining rural population and customer base in many areas of the country, including my district, raising the coverage limit will help small-town bankers keep up their core deposits. The current $100,000 coverage ceiling can force bank customers in rural areas to move deposits over that amount outside of their region or state. This should not have to be the case, particularly for our older citizens. As the AARP noted in its recent letter of support for this legislation, existing coverage limits have unfortunately created a situation where ``the alternative is to bank at more distant institutions or invest in the more volatile securities markets.'' To help remedy this problem, H.R. 522 will increase coverage for certain retirement accounts to $260,000, which will help keep customer deposits, especially seniors' funds, in local institutions. The bipartisan Federal Deposit Insurance Reform Act is reasonable, necessary legislation that will promote growth and stability in rural communities while maintaining consumers' confidence in the banking system at the same time. I urge my colleagues to vote yes on final passage of this legislation. ____________________