About The $250,000 FDIC Cap: It’s Retroactive, And 9,500 Depositors In Failed Banks Should Be Very Very Happy

Earlier today we mentioned that the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Obama permanently raised the maximum deposit insurance amount to $250,000. There’s one more thing to note about that: this increase is retroactive to January 1, 2008. 

That’s relevant to banks that failed between January 1 and October 3, 2008. These banks 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
 
What does this mean as a practical matter? Well, the FDIC says that this retroactive increase has reduced the number of uninsured depositors at these failed institutions from more than 10,000 to approximately 500.