On Monday, September 22, 2008, I introduced H. R. 6986, the Individual Depositor and Community Bank Protection Act of 2008 in the House of Representatives which would raise the maximum federal deposit insurance coverage from the FDIC from $100,000 to $200,000. I offered a similar proposal to House Financial Services Chairman Barney Frank (MA-04) as an amendment to the financial rescue plan.
On Tuesday, Sen. Obama endorsed a measure which would raise the FDIC cap to $250,000 as part of a revised financial rescue package. I welcomed his support and, subsequently, the support of his Republican rival, Sen. McCain. Last night the Senate included this provision in its version of the rescue package, and now, Chairman Frank has pledged to work with his colleagues on the Financial Services Committee to include this plan in a newer version of the rescue package as a vehicle for compromise in the House.
This proposal will not only give consumers more protection in this uncertain environment, but it could help garner more votes from my colleagues who were not willing to support the bill that was defeated on Monday. Every day that passes without a plan, more jobs are threatened as sources of personal and business credit dry up. We need to find areas of common ground, and increasing the FDIC insurance is one issue on which Democrats and Republicans can agree, and I am proud that Sen. Obama is supporting the FDIC hike.
Democratic leaders and I have been discussing this issue for well over a week now, and we certainly welcome the support of Republican Leadership and rank-and-file Republicans to ensure it becoming a part of the rescue plan. So, imagine my surprise yesterday when I found out about a memo being distributed by RNC spokesperson Alex Conant with the headline, "Sen. Obama Steals FDIC Idea from House Republican."
It is true that my friend, Congressman Christopher Shays (R-Conn.) introduced a bill on September 29th that would have raised the FDIC cap to $300,000 (H.R. 7235), but he introduced that legislation a full week after I did. The RNC's spin quickly made its way into stories released by the AP, CBS, the Wall Street Journal and other news organizations who wrongly stated that the idea was being floated only by Republicans. The fact is that I had been lobbying this bill to Democrats and Republicans, and I'd received support from Chairman Frank and Speaker Pelosi since I brought it up in a Caucus meeting to discuss solutions to the financial crisis.
I have no doubt that the Republican National Committee - with its army of researchers - was well aware of my legislation, and this is another example of their reckless disregard for the truth. They have shown time and time again that they will say and do anything to disparage Sen. Obama, and my colleagues and I have an obligation to call them on their fabrications.
We are in the middle of an economic crisis and now is not the time for such petty, fallacious attacks. It's not important who gets the credit for this bill; only that it helps rescue our economy from a major catastrophe.