FDIC PROPOSING “TEMPORARY UNLIMITED INSURANCE COVERAGE” FOR NONINTEREST-BEARING TRANSACTION ACCOUNTS BEGINNING 31 DECEMBER 2010
October 1st, 2010
Via: FDIC:
The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved the issuance of a proposed rule to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act to provide depositors at all FDIC-insured institutions unlimited deposit insurance coverage on noninterest-bearing transaction accounts beginning December 31, 2010 through December 31, 2012.
“In October 2008, the FDIC instituted a program providing unlimited protection for noninterest- bearing transaction accounts at participating banks and found it to be highly successful in providing stability at those institutions during one of the most severe economic downturns in our history,” said FDIC Chairman Sheila C. Bair. “The Dodd-Frank provision is different from the FDIC’s program but continues the purpose of that program as we emerge from the economic crisis.”
Under the proposal, the FDIC will create a new, temporary deposit insurance category for noninterest-bearing transaction accounts. These accounts are primarily checking accounts used by businesses for payrolls, accounts payable and other purposes.
