Boston Bar Praises FDIC Rule Protecting IOLTA Accounts

BOSTON – Upon receiving news of the FDIC’s announcement today that effective immediately client funds deposited in IOLTA accounts are eligible for unlimited deposit insurance coverage, Boston Bar Association President Kathy Weinman issues the following statement:

“On behalf of the Boston Bar Association and its 10,000 members I want to commend the FDIC for responding to concerns legal services organizations and bar associations expressed regarding the importance of ensuring that all funds in an IOLTA Account, regardless of size, be insured in full by the FDIC and backed by the full faith and credit of the United States Government as part of the Temporary Liquidity Guarantee Program.

IOLTA funds are essential because they provide more than 50% of revenues for legal aid programs in the Commonwealth of Massachusetts. Given recent economic events and a concomitant decline in state revenues, IOLTA funds are more important now than ever before.

We also want to express our deepest gratitude to members of the Massachusetts Congressional delegation for their assistance in highlighting the importance of ensuring that IOLTA funds are safeguarded under the Temporary Liquidity Program.”