NCUA Media Advisory

Fryzel Statement on Enactment of Stabilization Legislation

May 19, 2009, Alexandria, Va. – National Credit Union Administration (NCUA) Chairman Michael E. Fryzel statement on House and Senate passage of S.896, Helping Families Save Their Homes Act of 2009.   

The legislation includes the following credit union provisions:

• Extend $250,000 deposit insurance protection to 2013;
• Enable credit unions to spread the cost of corporate stabilization over 7 years;
• Extend replenishing the National Credit Union Share Insurance Fund through premiums to 8 years;
• Increase NCUA borrowing authority to $6 billion; and
• Establish $30 billion NCUA emergency borrowing authority. 

“Congress has acted quickly and appropriately in helping NCUA and the credit union industry deal with the corporate situation through the Corporate Stabilization Program.  The bill now awaits the President’s signature, an action that I hope happens as quickly as possible. As we move forward, I am confident that the Program will be of tangible benefit to the credit union industry in managing the costs to maintain a healthy and well-capitalized Share Insurance Fund.  I am equally confident that NCUA and the credit union industry will now work together to produce reforms for corporate credit unions that will result in a stronger, more durable system that is better able to serve 21st century credit unions.” 

The National Credit Union Administration is the independent federal agency that regulates 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, insuring the deposits of nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.

 

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