WASHINGTON – The Senate cleared almost 20 amendments to the corporate credit union bailout bill at the end of yesterday’s debate in preparation for a final vote on the bill this morning.
The bill, attached to several major housing provisions, would vastly expand the funding for NCUA and the banking regulators to deal with growing numbers of failures. "We have to provide the necessary resources to our financial institution regulators so they can continue to protect us," said Sen. Michael Crapo, during yesterday’s debate.
The Idaho Republican, who helped draft the bill, noted that the new funding provided for NCUA and the FDIC would not come from taxpayers, but from the credit unions and banks.
The bill would create a Corporate CU Stabilization Fund separate from the National CU Share Insurance Fund; allow NCUA to stretch out the costs of the corporate bailout over eight years; and provide up to $30 billion in emergency funding for NCUA to stem a systemic crisis.
It would also triple the funding for the FDIC to $100 billion to help deal with growing numbers of bank failures, and expand that to as much as $500 billion to stem a systemic crisis.
It would also extend for another four years last years increase in federal deposit insurance coverage to $250,000 per account.
