WASHINGTON – The House could vote as soon as today on a bill to give NCUA broad new powers to bail out the corporate credit union network, virtually rendering moot hearings scheduled for tomorrow on the new corporate bailout bill.
House and Senate leaders were negotiating last night on provisions of a housing bill passed by the Senate last week that includes several corporate bailout provisions, including creation of a Corporate CU Stabilization Fund; authority for NCUA to stretch out the costs of the bailout for as long as eight years; and emergency powers for NCUA to borrow up to $30 billion in the event of a systemic crisis.
In an unusual bit of congressional timing, the House could pass the Senate bill today or tomorrow, before tomorrow afternoon’s scheduled hearing before the House Financial Services Committee on the corporate bailout and a bill introduced last week that mirrors provisions in the Senate bill.
Even if that were to happen, an NCUA spokesman stressed the importance of creating a legislative record on the corporate bailout as part of the hearings.
The Senate bill would also provide up to $500 billion in emergency funds for the FDIC to finance the spreading bank bailout; as well as a four-year extension of the $250,000 per account coverage limit on all federally insured credit union and bank deposits.
NCUA Chairman Michael Fryzel is scheduled to testify at tomorrow’s hearings, as well as representatives of CUNA, NAFCU and NASCUS.
