FDIC Federal Register Citations

Re: Deposit Insurance Coverage for Living Trust Accounts

Bank of America Corporation (“Bank of America”) appreciates the opportunity to comment on the Federal Deposit Insurance Corporation’s (the “FDIC”) proposed rulemaking that was published in the Federal Register on June 30, 2003 relating to clarification of deposit insurance coverage for living trust accounts. Bank of America, with over $769 billion in total assets, is the sole shareholder of Bank of America, N.A., the largest bank in the United States, with full-service consumer and commercial operations in 21 states and the District of Columbia. Bank of America provides financial products and services to over 30 million households and two million businesses.

The FDIC has proposed two alternatives regulations that would articulate the calculation of deposit insurance coverage for living trust accounts. Alternative One would provide deposit insurance coverage up to $100,000 per qualifying beneficiary irrespective of defeating contingencies. Alternative Two would provide coverage up to $100,000 per owner/grantor of an account, regardless of the number of beneficiaries.

Bank of America supports the FDIC’s efforts to clarify and simplify the deposit insurance regulations relating to living trust accounts. Either alternative would be an improvement over the current uncertainty in calculating deposit insurance coverage. Bank of America prefers Alternative Two that bases deposit insurance on the owners/grantors of an account because it provides more clarity and certainty.

* * * * * *

We thank you for your consideration of the foregoing.

Sincerely,

Phillip A. Wertz
Assistant General Counsel
Bank of America Corporation
Legal Department
101 South Tryon Street
Charlotte, NC   28255