Alert September 15, 2009

FDIC Board Adopts Final Regulation Concerning Deposit Insurance Coverage

The FDIC Board of Directors approved a final rule (the “Final Rule”) that amends the FDIC’s deposit insurance regulations to: (1) reflect the May 2009 Congressional action that extends until December 31, 2013 the temporary increase in the standard maximum deposit insurance amount (referred to as the “SMDIA”) from $100,000 to $250,000; (2) finalize, without substantive changes, the FDIC deposit insurance coverage rules for revocable trust accounts that had been adopted as an Interim Rule in September 2008 and that were designed to make the coverage rules for revocable trust accounts easier to understand and apply; and (3) finalize, without substantive changes, the revisions to the mortgage servicing account (i.e., payments collected by mortgage servicers and deposited in accounts at depository institutions) deposit insurance regulations, which had been adopted by the FDIC as an Interim Rule in October 2008.

The Final Rule will be effective 30 days after its publication in the Federal Register.