I 
110TH CONGRESS 
2D SESSION 
H. R. 7232 
To reform the Federal Deposit Insurance System, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2008 
Mr. GOHMERT introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To reform the Federal Deposit Insurance System, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. INCREASE IN DEPOSIT INSURANCE COVERAGE. 
(a) IN GENERAL.—Section 11(a)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amend-
ed— 
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) NET
AMOUNT
OF
INSURED
DE-
POSIT.—The net amount due to any depositor 
at an insured depository institution shall not 
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exceed the standard maximum deposit insur-
ance amount as determined in accordance with 
subparagraphs (C), (D), (E), and (F) and para-
graph (3).’’; and 
(2) by adding at the end the following new sub-
paragraphs: 
‘‘(E) STANDARD
MAXIMUM
DEPOSIT
IN-
SURANCE AMOUNT DEFINED.—For purposes of 
this Act— 
‘‘(i) the term ‘standard maximum de-
posit insurance amount’ means— 
‘‘(I) until the effective date of 
final regulations prescribed pursuant 
to section 9(a)(2) of the Federal De-
posit Insurance Reform Act of 2005, 
$100,000; and 
‘‘(II) on and after such effective 
date, $100,000 or $500,000, at the 
option of the insured depository insti-
tution, and $250,000 or $500,000 for 
eligible retirement accounts, at the op-
tion of the insured depository institu-
tion, adjusted as provided under sub-
paragraph (F); and 
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‘‘(ii) the term ‘eligible retirement 
plan’ has the same meaning as in section 
402(c)(8)(B) of the Internal Revenue Code 
of 1986. 
‘‘(F) INFLATION ADJUSTMENT.— 
‘‘(i) IN
GENERAL.—By April 1 of 
2009, and the 1st day of each subsequent 
5-year period, the Board of Directors and 
the National Credit Union Administration 
Board shall jointly consider the factors set 
forth under clause (v), and, upon deter-
mining that an inflation adjustment is ap-
propriate, 
shall 
jointly 
prescribe 
the 
amount by which the standard maximum 
deposit insurance amount and the standard 
maximum share insurance amount (as de-
fined in 207(k) of the Federal Credit 
Union Act) applicable to any depositor at 
an insured depository institution shall be 
increased by calculating the product of— 
‘‘(I) $100,000 or $500,000, at 
the option of the insured depository 
institution, and $250,000 or $500,000 
for eligible retirement accounts, at the 
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option of the insured depository insti-
tution; and 
‘‘(II) the ratio of the published 
annual value of the Personal Con-
sumption Expenditures Chain-Type 
Price Index (or any successor index 
thereto), published by the Department 
of Commerce, for the calendar year 
preceding the year in which the ad-
justment is calculated under this 
clause, to the published annual value 
of such index as of the date this sub-
paragraph takes effect. The values 
used in the calculation under sub-
clause (II) shall be, as of the date of 
the calculation, the values most re-
cently published by the Department of 
Commerce. 
‘‘(ii) ROUNDING.—If the amount de-
termined under clause (ii) for any period is 
not a multiple of $10,000, the amount so 
determined shall be rounded down to the 
nearest $10,000. 
‘‘(iii) PUBLICATION AND REPORT TO 
THE CONGRESS.—Not later than April 5 of 
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any calendar year in which an adjustment 
is required to be calculated under clause (i) 
to the standard maximum deposit insur-
ance amount and the standard maximum 
share insurance amount under such clause, 
the Board of Directors and the National 
Credit 
Union 
Administration 
Board 
shall— 
‘‘(I) publish in the Federal Reg-
ister the standard maximum deposit 
insurance amount, the standard max-
imum share insurance amount, and 
the amount of coverage under para-
graph (3)(A) and section 207(k)(3) of 
the Federal Credit Union Act, as so 
calculated; and 
‘‘(II) jointly submit a report to 
the Congress containing the amounts 
described in subclause (I). 
‘‘(iv) 6-MONTH IMPLEMENTATION PE-
RIOD.—Unless an Act of Congress enacted 
before July 1 of the calendar year in which 
an adjustment is required to be calculated 
under clause (i) provides otherwise, the in-
crease in the standard maximum deposit 
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insurance amount and the standard max-
imum share insurance amount shall take 
effect on January 1 of the year imme-
diately succeeding such calendar year.’’. 
Æ 
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