WASHINGTON – Chances of legislation to facilitate capital infusions into troubled credit unions through the Treasury Department's Troubled Asset Relief Program were diminishing yesterday, even as the House was voting to pass a bill that would enable credit unions to count TARP cash as net worth, or capital.
That’s because the Senate is not expected to vote the bill, which would also make permanent the temporary increase in federal deposit insurance coverage to $250,000 per account.
"I don’t think anybody really expects that bill to be considered by the Senate," said Ryan Donovan, senior lobbyist for CUNA. "Our concern is that credit unions continue to have access to assistance that they need."
"It is unlikely that the legislation is going to become law," said Brad Thaler, senior lobbyist, who also noted a lack of enthusiasm for the measure in the Senate. But, said the NAFCU lobbyist, the House vote does provide an impetus for getting the credit union provision into another bill.
The chances of the House bill, which would change parts of last fall’s TARP legislation, became dimmer still after the Senate voted last week to release the final $350 billion of the $700 billion TARP funds to the Treasury Department for disbursal.
