Compliance Blog

It seems I have an FDIC insurance update each day.  Well, here's another.  Press reports indicate that the FDIC will ask Congress to bump up FDIC amounts from $100,000 to $250,000.  If this were to go through, I would bet that the NCUSIF would be given parity.  However, the last time I checked, I am not the FDIC.  Nor am I Congress.  So stay tuned!

NCUA Chairman Michael E. Fryzel wasted no time in voicing his support and urging that any changes include the NCUSIF.  Here's what a press release issued by NCUA last evening stated:

September 30, 2008 – National Credit Union Administration (NCUA) Chairman Michael E. Fryzel today voiced support for an increase in insurance limits for accounts backed by both the National Credit Union Share Insurance Fund (NCUSIF) and the Federal Deposit Insurance Corporation (FDIC).

 â€œIncreasing federal insurance coverage for credit union members would send an important signal of reassurance at a time when confidence in depository institutions generally has been compromised by market events,” Chairman Michael Fryzel said.  

“The NCUA has been in constant contact with our fellow regulators as well as congressional leaders.  I commend FDIC Chairwoman Sheila Bair for her leadership on this issue, and I cannot overstate how important it is that the protections offered by our two insurance funds remain parallel. The funds of working Americans are equally important, whether those accounts belong to credit union members or bank customers.”

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

Here'sa NAFCU Today article on the subject.  And here's another NAFCUToday article detailing NCUA plans for a national share insurance awareness campaign. (Be sure to check it out;  the poster they designed sure grabs your attention.)

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Here's a few other things that have taken place:

• The National Flood Insurance Program has been extended until March 2009.  Read all about it here.  (USA Today.)

• The Fed has amended (increased) the Reg D reserve requirement exemption and low reserve tranche for 2009.  Read all about it here.