NCUA Chairman Michael E. Fryzel today asked Congress to give his agency the $30 billion in emergency borrowing authority from the Treasury Department.
The additional funds would only be tapped "as circumstances warrant."
Fryzel said in a letter to Senate Banking Committee Chairman Christopher Dodd (D-Ct.) and the panel's ranking Republican, Sen. Richard Shelby of Alabama.
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Fryzel's letter was sent on the eve of the committee's scheduled meeting to mark up a bill on to revamp the rules on credit cards. During that meeting, Sens. Michael Crapo (R-Idaho) and Bob Corker (R-Tenn.) are planning to offer an amendment raising the NCUA's borrowing authority from $100 million to $6 billion and giving it an additional $18 billion in emergency borrowing authority. Also, it would give the NCUA five years to replenish the NCUSIF if its equity ratio drops below 1.2%.
Fryzel wrote that the $30 billion in borrowing authority would be "temporary" but he didn't specify a length of time.
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