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FDIC Consumer News
Important Update: FDIC Insurance Coverage Increased in Late 2008
In the fall of 2008, Congress temporarily increased the basic FDIC insurance coverage limit from $100,000 to $250,000 through December 31, 2009. In addition, the FDIC simplified the rules for the calculation of deposit insurance coverage for revocable trust deposits, including an expanded definition of the "eligible beneficiaries" for additional insurance coverage. As a result, certain previously published information related to FDIC insurance may not reflect the current insurance coverage. For more information, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
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Winter 2005/2006
Banks Are Required to Prepare for Disasters
Federal and state banking regulators require financial institutions to develop
and test "disaster recovery" and "business continuity plans." Each
plan must spell out how the bank will recover data, ensure the availability of
cash, continue customer service, and otherwise function efficiently after a wide-ranging
disaster — one in which personnel are unavailable, key facilities are
closed, and power and phones are out for an extended period.
According to Michael Jackson, an Associate Director of the FDIC's Division
of Supervision and Consumer Protection, the terrorist attacks on September 11,
2001, and the recent devastation from Hurricanes Katrina and Rita reminded the
financial industry and its regulators "that you must be ready for a disaster
of any magnitude or duration — you cannot plan for something small or
brief."
"Banking institutions play a vital role in supporting the economy, businesses
and individual families after a disaster," added Kathryn Weatherby, an
Examination Specialist for the FDIC. "It's in everyone's
best interest that banks bounce back quickly and that disruptions are minimized."
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