Another Gem in the Dodd-Frank Bill

This one was spotted by Jack Krupansky. According to an FDIC press release:

The Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Barack Obama today permanently raised the maximum deposit insurance amount to $250,000. In addition, the Act made this increase retroactive to January 1, 2008.

The provision making the law retroactive means that the $250,000 deposit insurance amount applies to banks that failed between January 1 and October 3, 2008. These insured institutions are:

* Hume Bank, Hume, MO
* ANB Financial, N.A., Bentonville, AR
* IndyMac Bank, F.S.B., Pasadena, CA
* First Priority Bank, Bradenton, FL
* The Columbian Bank and Trust Company, Topeka, KS
* Silver State Bank, Henderson, NV

This retroactive increase has reduced the number of uninsured depositors at these failed institutions from more than 10,000 to approximately 500.

The FDIC will mail checks to uninsured depositors tomorrow, July 22, 2010..

Retroactive insurance paid out by the government is one hell of an idea, that is, money being paid out to people who had no reason to expect any such payout. It, of course, will not be such a great idea for the general tax payer who will have to foot the bill for this Obama generosity with tax payer money.