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#1418098 - 07/21/10 06:16 PM Increased FDIC insurance - now permanent
AuditorK Offline
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PA
Since Obama signed the Financial Reform Act, should we be changing our FDIC signs and disclosures immediately to reflect the permanent $250,000 amount of insured deposits? Is there any reason to wait to do so (i.e. - directive from the regulators or FDIC)?

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#1418120 - 07/21/10 06:40 PM Re: Increased FDIC insurance - now permanent AuditorK
RR Joker Offline
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I would not until FDIC officially changes the official logo sign.
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#1418124 - 07/21/10 06:45 PM Re: Increased FDIC insurance - now permanent RR Joker
AuditorK Offline
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That's what I was initially thinking, but started to doubt myself after I received the press release directly from the FDIC stating that the $250,000 is permanent.

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#1418207 - 07/21/10 08:06 PM Re: Increased FDIC insurance - now permanent AuditorK
AuditorK Offline
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When I go on the FDIC's site to order signs, they all show the $250,000 coverage amount - no reference to the 12/31/2013 expiration date. It looks like they already updated the signs. Also, the FDIC brochures have all been pulled for updating and are currently unavailable. I think we're going to go ahead and update our disclosures/signs.

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#1418379 - 07/22/10 12:32 PM Re: Increased FDIC insurance - now permanent AuditorK
RR Joker Offline
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thanks for the heads up, AK
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My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1418409 - 07/22/10 01:11 PM Re: Increased FDIC insurance - now permanent RR Joker
Georgia Plum
Unregistered

I'm waiting for the official FIL.

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#1418446 - 07/22/10 01:43 PM Re: Increased FDIC insurance - now permanent
RR Joker Offline
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The Swamp
Georgia, it is out and available on their publications section...I just ordered my electronic version and am gathering numbers for the actual teller stations for our branches.
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Say you'll haunt me - Stone Sour

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#1418456 - 07/22/10 01:50 PM Re: Increased FDIC insurance - now permanent RR Joker
waldensouth Offline
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FINALLY ABOVE the gnat line
Yep - glad they pulled the order section out of FDIC Connect. I sent the new link to our retail staff to handle getting new signs ordered and distributed.

Welcome to your FDIC Online Product Catalog

Here's the FIL.
Last edited by waldensouth; 07/22/10 02:12 PM.
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#1418471 - 07/22/10 02:12 PM Re: Increased FDIC insurance - now permanent waldensouth
RR Joker Offline
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HA! I just got the e copy...it's the old "temporary" sign.

She just responded back and said the new sign hadn't been released to them yet! crazy
Last edited by RR joker; 07/22/10 02:13 PM.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1418474 - 07/22/10 02:16 PM Re: Increased FDIC insurance - now permanent RR Joker
RR Joker Offline
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At least the official FIL just came out!
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Say you'll haunt me - Stone Sour

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#1418475 - 07/22/10 02:17 PM Re: Increased FDIC insurance - now permanent RR Joker
DD Regs Offline
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Somewhere in the middle
I don't know where you all are seeing the new stuff. Everyone I have looked at still show the temporary language. And FDIC says on their site they have not yet updated the material and it will be coming soon.
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#1418480 - 07/22/10 02:19 PM Re: Increased FDIC insurance - now permanent RR Joker
QCL Offline
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#1418483 - 07/22/10 02:21 PM Re: Increased FDIC insurance - now permanent QCL
DD Regs Offline
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Somewhere in the middle
No temporary or expiration date. Looks new to me.
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#1418491 - 07/22/10 02:27 PM Re: Increased FDIC insurance - now permanent DD Regs
AuditorK Offline
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PA
I guess we'll also need to update our TLGP - Transaction Account Guarantee lobby disclosure as well. This has been changed with the reform bill's signing. According to the chart on this webpage:

FDIC Deposit Insurance Summary

Beginning 12/31/10 through 12/31/12, deposits held in noninterest-bearing transaction accounts will be fully insured, regardless of the amount in the account, at all FDIC-insured institutions (regardless of whether they were participating in the TAG program).

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#1418530 - 07/22/10 02:53 PM Re: Increased FDIC insurance - now permanent AuditorK
BNKO Offline
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Auditor K,

Other than the chart that is on the FDIC Summary website page, have you seen any other publication regarding the non-interest bearing checking accounts being fully insured through 12/31/12?

We are not participating in the TAG program due to our denovo status and currently disclose that non-interest bearing checking accounts are insured up to $250,000. It sounds like I should change our sign to read these are fully insured with no expiration date. Would that be a correct interpretation?

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#1418533 - 07/22/10 02:56 PM Re: Increased FDIC insurance - now permanent AuditorK
ahkcompliance Offline
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Midwest
I was just wondering if the TLGP notice needed to be updated. We do not participate either but I was thinking we would need to add a section that says the 12/31/12 depostis will be fully insured in non-interest accounts and after that time will remain insurned under the standard 250,000.

Any thougths?
Last edited by ahkcompliance; 07/22/10 03:05 PM.
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#1418543 - 07/22/10 03:05 PM Re: Increased FDIC insurance - now permanent BNKO
AuditorK Offline
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BNKO,

I think if you chose not to participate in the TAG program, then the unlimited coverage won't start until 12/31/10 (at least that's the wording from the FDIC's chart). Having said that, it does seem odd to not make that unlimited coverage begin immediately as well.

I did see reference to this unlimited coverage now applying to all banks, not just those participating banks, in a summary put together by the ICBA. I can't seem to find that document right now - not surprisingly lost in the mountain of information on my desk!

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#1418617 - 07/22/10 03:50 PM Re: Increased FDIC insurance - now permanent AuditorK
BNKO Offline
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Thanks, AuditorK. I'll go out to the ICBA and see if I can find it. As long as I've been in Compliance, I still question why "they" can't send out information in a manner that actually makes sense!

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#1418621 - 07/22/10 03:51 PM Re: Increased FDIC insurance - now permanent AuditorK
Mary Beth Guard Offline
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Oklahoma City, OK
I just have to vent about the fact that they made the increase RETROACTIVE to January 1, 2008 and applicable to deposits in banks that failed all the way back to that date.

Those depositors put their money in at a time when the deposit insurance rules were clear and the limit (per right and capacity) was $100,000. What possible justification is there for going back and giving them more insurance than they had anticipated and qualified for? It's like when someone spots an item at an estate sale for $50, decides to buy it at that price, takes it up to pay, and the person says "I'll give it to you for $35." Why? It is stupid, stupid, stupid and costs the FDIC deposit insurance fund precious dollars -- which then translates to existing banks having to pay more in premiums.

I would like to know who authored that provision in the law.

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#1418632 - 07/22/10 03:55 PM Re: Increased FDIC insurance - now permanent Mary Beth Guard
RR Joker Offline
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good grief. That is ridiculous.

I'm guessing that's another affect of looking out for the poor consumer who needs protection from their own self?
Last edited by RR joker; 07/22/10 03:56 PM.
_________________________
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#1418641 - 07/22/10 03:57 PM Re: Increased FDIC insurance - now permanent Mary Beth Guard
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Galveston, TX
You can probably guess it was someone in the district of the depositors in one of the six banks that are covered under the retro provisions. IndyMac had a $1B in uninsured deposits - I would probably start there.
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#1418645 - 07/22/10 03:59 PM Re: Increased FDIC insurance - now permanent RR Joker
Cornfed Turtle Offline
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"...Somewhere in Middle Americ...
MBG: Perhaps we should compare the list of senators to the list of Indymac depositors?

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#1418670 - 07/22/10 04:14 PM Re: Increased FDIC insurance - now permanent Cornfed Turtle
Mary Beth Guard Offline
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Mary Beth Guard
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Oklahoma City, OK
Originally Posted By: Cornfed Turtle
MBG: Perhaps we should compare the list of senators to the list of Indymac depositors?


I'm sure you are all right on target. This cracked me up, Turtle. With rampant self-dealing going on, it's not beyond the realm of possibility, which is just too gross to contemplate.

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#1418697 - 07/22/10 04:30 PM Re: Increased FDIC insurance - now permanent Mary Beth Guard
Cornfed Turtle Offline
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"...Somewhere in Middle Americ...
Randy's reply is certainly more probable and, as usual, he types faster than I!

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#1418704 - 07/22/10 04:37 PM Re: Increased FDIC insurance - now permanent Cornfed Turtle
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You are here
Let see one of IndyMac's founders was Angelo from Countrywide that gave a FOA mortgage to Dodd.....
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