PACB Letter to U.S. Senator Rick Santorum

October 13, 2005

The Honorable Rick Santorum
United States Senate
Member, Senate Banking Committee
Washington, DC 20510

RE: Senate Banking Mark Up of S. 1562, the Safe and Fair Deposit Insurance Act

Dear Rick:

It is our understanding that the Senate Banking Committee will take up S. 1562, the Safe and Fair Deposit Insurance Act of 2005. We also understand that Chairman Shelby has adopted a “no amendment” strategy to ensure expedited passage of this critical legislation. As a member of the Senate Banking Committee, the Pennsylvania Association of Community Bankers urges your support for S. 1562 and the Chairman’s strategy.

Reform of the deposit insurance program is crucial and time is of the essence. S. 1562 and its House counterparts would go a long way towards strengthening the deposit insurance fund and improving the way the program is operated.

Without Congressional action and FDIC reform this year, the BIF-insured institutions face a premium if the BIF reserve ratios fall below the current 1.25% minimum. S. 1562 merges the BIF and SAIF which is a long-time goal of PACB.

Thank you for your leadership on behalf of Pennsylvania and community banking and we deeply appreciate your consideration of this request. Please do not hesitate to have your staff contact Dave Transue, PACB’s Government Affairs Consultant, if you have any questions or need further information.

Sincerely,

Frank A. Pinto
President/CEO

Cc: PACB Executive Committee
      PACB Legislative Committee
      ICBA