The Public Deposit Insurance Fund, Indiana’s state-based backup to the Federal Deposit Insurance Corp., has served its purpose for more than 70 years, and efforts by some Indiana lawmakers to raid this fund are misguided (“Daniels, bankers may spar,” Dec. 27).
The state collected money in the PDIF for the purpose of insuring bank deposits; it should not use those funds for other purposes. Although the PDIF has not been used extensively, the near-elimination of privately provided deposit insurance over the past few years, coupled with a near-record number of bank failures, means the PDIF increases the stability of Indiana’s banking system. The fund should stay in place.
Legislative specialistThe Heartland Institute, Chicago