ALEXANDRIA, Va. – NCUA yesterday extended the corporate credit union share guarantee, which has been critical in stemming a run on corporate deposits for another three months, until Sept. 30, 2012.
The extension will cover new deposits with maturities of two years or less in participating corporate credit unions made before Sept. 30, 2012, to be fully covered by the guarantee program, a major part of the agency’s corporate bailout program.
The move comes after NCUA extended the portion of the program that guarantees short-term debt issued by the corporates, known as the Temporary Corporate CU Liquidity Guarantee Program.
Both programs, along with the Corporate CU Stabilization Fund, are crucial to keeping afloat several big corporates which have depleted all, or almost all, of their member capital, and are effectively insolvent, until NCUA devises a permanent restructuring of the corporate system.
