Lawmakers completing a sweeping overhaul of financial regulations have given 8,700 former account holders at failed IndyMac Bank a surprise gift, retroactively increasing government-backed deposit insurance limits that would allow them to recover some of their lost money.
The move came Tuesday as House and Senate negotiators agreed to permanently increase to $250,000 the Federal Deposit Insurance Corp. coverage for individual accounts and to make it retroactive to Jan. 1, 2008.
Congress temporarily boosted the coverage from $100,000 per account during the financial crisis in October 2008 — three months after federal regulators seized the Pasadena savings and loan.
• Read the full Los Angeles Times story.
