November 28, 2008
FDIC Covers Client Funds
Last week, the Columbus Bar Association, in concert with the ABA, voiced its concern to legislative representatives about a new FDIC policy under the Temporary Liquidity Guarantee Program which would have had the unintended effect of capping federal protection on IOLTA accounts, thus endangering the funding generated by IOLTA to sustain legal aid programs around the country. Congress listened and acted to insure the viability of IOLTA programs. The FDIC will now insure an individual client’s funds deposited in an IOLTA account regardless of the amount. Special credit for initiating the Columbus Bar’s response to this critical issue should go to John Hoppers (Strip Hoppers Leithart McGrath & Terlecky), Al Cincione (Butler Cincione & DiCuccio), Charles Warner (Porter Wright Morris & Arthur) and, of course, to our congressional delegation for bringing about this corrective action.