Kudos to NCUA Chairman Michael Fryzel. Yesterday, Mr. Fryzel requested credit union inclusion in the Treasury Department’s recently expanded deposit insurance coverage of non-interest bearing deposit accounts. See the press release here. If granted, it would create parity between banks and credit unions. Here's what he says:
‘Based on the belief that the policies of the National Credit Union Share Insurance Fund (NCUSIF) should be generally consistent with those of the FDIC, I believe that there should be full share insurance coverage for non-interest-bearing transaction accounts temporarily through 2009,” said Fryzel. “I am requesting that Treasury establish a parallel guarantee for credit unions in order to avoid any unintended impact on the credit union system.”
Fryzel also noted in an October 22, 2008 letter to Secretary Henry M. Paulson that NCUA lacks statutory authority similar to that of FDIC in creating such a program for banks and thrifts, specifically pertaining to systemic authority.
Separately Chairman Fryzel noted the importance for consumers in “the federal government creating a uniform regime regarding insured deposits. Given the uncertainty and turmoil in the markets, it is critical that consumers have confidence in the guarantee that stands behind funds in these non-interest bearing transaction accounts, regardless of what type of insured institution is providing the service.”
No word yet from Treasury. As usual, stay tuned. But one thing is for sure, NCUA is moving quickly to do what it can to create parity for credit unions when compared to other financial institutions in this highly volatile financial environment.
Mandy and I are pleased to announce that we are expecting...twins! (We're getting one of each flavor: a boy and a girl.) We're very excited, and the twins seem to be doing fine. This "final rule's" "effective date" is early March. Wish us luck!
Have a great weekend, everyone. (Except for you Buckeye fans.)