WASHINGTON — The House and Senate are scheduled to vote today on the legislation ironed out over the weekend to create a $700 billion fund to buy illiquid assets from financial institutions, including credit unions.
The compromise measure was a victory for NCUA and the credit union lobbyists. NCUA, CUNA and NAFCU all worked to ensure that credit unions could participate in the program. And CUNA and NAFCU were successful in working with other financial institution lobbyists to prevent inclusion of a provision that would have allowed bankruptcy judges to rewrite mortgages.
To ensure that the program does not cost the government money, it includes a provision that if the government is losing money on the sales, the president must submit a plan to raise additional money from financial institutions to make up for those losses.
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