WASHINGTON — CUNA and NAFCU are both lobbying to get credit unions included in the increased deposit insurance recently approved by the Bush administration.
The administration announced earlier this week that the FDIC will insure all deposits, regardless of their size, in banks' business accounts that don't earn interest. Credit unions were not mentioned when the policy change was made, in conjunction with the government's decision to buy shares of some of the nation's largest bank companies.
"In our view, NCUA has sufficient legal authority to establish a similar program to permit any federally insured credit union to participate. Our legal analysis has been provided to your staff. Failure by NCUA to address this issue for credit unions could undermine credit unions' hard-won success in serving small businesses and others in their communities," CUNA President Dan Mica wrote NCUA Chairman Michael E. Fryzel.
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NAFCU President Fred Becker wrote Treasury Secretary Henry Paulson a letter in which he urged the department "to provide a similar benefit to credit unions as we do not want to see credit unions disadvantaged." Becker expressed concern that credit union members might move their business accounts to banks if parity is not provided.
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