WASHINGTON – The House voted passage this afternoon of a bill passed by the Senate last week which will enact the corporate credit union bailout.
The bill, which is now on its way to President Obama for his signature, will create a $6 billion Corporate CU Stabilization Fund; allow NCUA to stretch out the costs of the corporate bailout for as long as eight years; and provide $30 billion in emergency funding for NCUA to stem a systemic crisis.
The main feature of the bill is the provision to stretch out the costs of the bailout, which will allow credit unions that reported a first-quarter charge for their share of the bailout costs to add those charges back into their financials, and take them over eight years instead.
The bill also includes provisions to advance the banking bailout, including authority for the FDIC to borrow as much as $500 billion to resolve growing numbers of bank failures.
It also extends for four years the increase in deposit insurance coverage to $250,000 per account.
Passage of the bill comes a day before the House is scheduled to hold hearings on the corporate bailout, where NCUA Chairman Michael Fryzel, as well as representatives of CUNA, NAFCU and NASCUS will testify.
