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From the desk of Dan Plauda
ICUL President/Chief Executive Officer
In response to the many e-mails and voice mail messages I have received regarding the status of financial matters in Washington that may affect credit unions, the following are the latest developments in the ever-changing financial crisis landscape.
SUMMARY
- On October 3, 2008, the Emergency Economic Stabilization Act of 2008 was passed and included an immediate increase in share insurance protection to $250,000 on all types of
accounts until Dec. 31, 2009. President George W. Bush signed the economic rescue package on the same day as its passage. NCUA is reviewing all share insurance coverage materials included on the Internet Share Insurance Tool Kit, such as the "Your Insured Funds" brochure and print advertisement, to make needed revisions. Revised documents reflecting $250,000 coverage will be posted to the NCUA website as soon as possible, according to the agency.
- President Bush specifically mentioned credit unions being included in the deposit insurance coverage. This was huge in terms of raising the visibility of the parity issue. His inclusion of credit unions in his public remarks follows repeated contacts from CUNA to Treasury and the White House urging that he do this. House leadership was also urged to do the same in their public remarks.
- CUNA has continually reached out to national press with phone calls and email contacts reminding them of the increased coverage leverage for credit unions. Communications staff also visited Capitol Hill press galleries handing out press releases reminding them to include "credit unions" in their reporting on the financial rescue legislation's provisions on expansion of federal deposit insurance coverage.
- Nearly 200 radio stations so far have aired a radio news release sent out on the legislation and its impact on credit union deposit insurance coverage levels. Markets where the segment aired included Los Angeles, New York, Chicago, Philadelphia and Minneapolis.
- Ahead of the House vote, a second press release was blasted out to more than 500 news organizations and news outlets across the nation.
- Efforts were coordinated with NCUA to support language that would preclude adjustment of the 1 percent NCUSIF deposit and/or the assessment of a premium to pay for the additional insurance coverage levels in order to minimize the cost to credit unions of any additional insurance coverage.
- Each House member was contacted urging support of the financial rescue bill. The message to these lawmakers noted that credit unions did not cause the problems we face but they and their members are certainly being affected by current economic conditions, and so the cost of inaction may well outweigh the cost of action.
- After the Senate passed the bailout, CUNA President Dan Mica contacted Senate Banking Committee Chairman Chris Dodd ranking member Shelby to press for final passage of the Credit Union, Bank and Thrift Regulatory Relief Act (CUBTRRA) prior to Senate’s adjournment. CUBTRRA—which grants credit unions new authorities to serve lower-income individuals—has already passed the House with the support of banks and credit unions and is considered non-controversial.
In addition, I recently returned from the League’s annual Hike the Hill event held last week. Please see our lead story, "Illinois CU execs 'Hike the Hill' with newly appointed NCUA Chairman Fryzel for several key points that came out of our HTH experience.
Lastly, ICUL has prepared and sent out numerous press releases, facts sheets, and letters to the editor to media outlets across the state, and also recently put out a talking points sheet about share insurance with information about safety and soundness resources for its member credit unions. This information is available on the League's Web site.
Please let us know if you need anything further.
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