Condo Media - October 2010 - (Page 30)

FINANCE by Kenneth A. Bloom, CPA or many years, the FDIC (Federal Deposit Insurance Corporation) insurance issue was straightforward. FDIC insurance protected each depositor’s first $100,000 in any bank in the United States, while deposits in excess of $100,000 were uninsured. The financial collapse in Fall 2008 forced the FDIC to take two actions: F 1 It temporarily increased the insured limit to $250,000 in order to help restore confidence in the U.S. financial markets 2 It created the Transaction Account Guarantee Program (TAGP) under which the limit was completely removed on checking accounts with unlimited check writing, and on which the interest paid to the depositor was no more than .5 percent. After several revisions to the rules since Fall 2008, we now have what appears to be a final set of rules. On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law; it includes provisions which permanently increase the insured limit to $250,000 per depositor per financial institution. The new law also revised the TAGP program, which is no longer automatic. The new TAGP program requires banks to choose whether or not to participate, and those that do choose to participate must pay an additional fee to the FDIC. Consequently, many banks have opted out of the TAGP, so it is important to check 30 CONDO MEDIA • OCTOBER 2010

Table of Contents for the Digital Edition of Condo Media - October 2010

Condo Media - October 2010
From the CED’s Desk
President’s Message
CAI News
CAI Regional News
Asked & Answered
Homeowner’s Corner
CAI-NE Annual Conference & Expo
Vendor Spotlight
Board Member Insight
Industry Perspective
Advertisers Index
Classified Service Directory
Statement of Ownership

Condo Media - October 2010