November 28, 1989
TO: PENSION MEMBERS NO. 51-89
UNIT INVESTMENT TRUST MEMBERS NO. 64-89
SEC RULES COMMITTEE NO. 74-89
RE: FDIC STUDY ON PASS-THROUGH DEPOSIT INSURANCE
__________________________________________________________
The Federal Deposit Insurance Corporation ("FDIC") is
preparing a report to be transmitted to Congress of its findings
and recommendations relating to the pass-through of deposit
insurance either to individual investors in unit investment trust
funds or to individual participants in pension or profit-sharing
plans qualified under section 401 of the Internal Revenue Code of
1986. The FDIC is soliciting comments on the issues it will be
exploring in its study.
In the attached notice, the FDIC specifically requests
comments, suggestions and data or statistics on the following
items:
1. The extent to which the FDIC should, as a matter of
policy, provide pass-through deposit insurance for
deposits of unit investment trusts and to
individual participants in certain pension and
profit-sharing plans.
2. The effect of pass-through insurance coverage on
the safety of the insurance funds and the operation
of capital markets.
3. The extent to which pass-through insurance coverage
generally affects the liquidity of insured
financial institutions.
4. The potential effects of expanding the existing
insurance coverage to provide pass-through
insurance coverage for individual investors in unit
investment trusts.
Comments on the FDIC study are due by December 15, 1989.
Please provide me with any comments that you would like included
in the Institute's comment letter by December 8, 1989.
Amy B. Rosenblum
Assistant General Counsel
Attachment