Federal Deposit Insurance Reform Act of 2003 - Floor Speech
Mr. Speaker, I rise in support of H.R. 522, the Federal Deposit Insurance Reform Act of 2003.
This legislation would accomplish a much-needed modernization of our Federal Deposit Insurance System. It would help millions of typical Americans get the important protection for their savings that they deserve. H.R. 522 would help modernize the system by increasing the deposit coverage levels for our nation’s savers from $100,000 to $130,000. I have no doubt that H.R. 522 would help many Americans get the important protection they deserve for their nest-eggs.
HR 522, strengthens the nation’s insured depository institutions, especially small banks, thrifts, and credit unions. It also ensures that the Federal deposit insurance system does not harm the ability of insured depository institutions to meet the nation’s credit needs at all stages of the economic cycle. And, who can argue against a bill the advances the national priority of enhancing retirement security for all Americans.
Coverage levels are increased for IRAs and 401K plans, which is essential to our economy as our population ages and retirees are realizing the large sums of money it takes today to maintain an adequate standard of living. That is why the AARP supports the bill.
We must pass this bill in order to encourage retirees in smaller towns to keep their savings in local community banks instead of transferring their monies to larger banks headquartered in a distant city. Transactions to larger banks hurt the local community’s economy because the saver’s monies are not recycled back into the community. It also directly hurts the local community’s residents because there are less loan funds available, access to credit can become more difficult, and the cost of raising funds to lend becomes higher.
This evolution of bank transactions ultimately hurts the local economy by threatening the job base and economic vitality of the local community.
I know this bill has widespread support in this chamber. During the 107th Congress, the House passed similar legislation with an overwhelming bipartisan vote of 408 to18. Last year’s solid vote of support indicates to me both the importance of this measure and the grassroots support behind it.
I urge my colleagues to pass H.R 522 with similar resolve. Today, more than ever, American savers and investors need reassurance that their elected representatives are helping to ensure their hard-earned savings are safe with a modern deposit insurance system. Let’s promote confidence for today’s disheartened saver and investor.
In light of its broad passage in the House last year, I look forward to an honest debate and fair consideration of H.R. 522.
