ALEXANDRIA, Va. – The NCUA Board is expected next week to extend its temporary guarantee on all corporate credit union deposits beyond the current Dec. 31, 2010 expiration date.
The extension, which would be enacted on a rolling basis for two years, will allow credit unions to continue to ladder their investments in the corporates as they come due, according to David Marquis, executive director of the agency. This would benefit both credit unions and the corporates, he said.
The guarantee program is one of the lynchpins of NCUA’s corporate stabilization program and has resulted in an increase in deposits in the corporates, even as the two biggest corporates, U.S. Central FCU and WesCorp FCU, have been taken under conservatorship by NCUA.
One of the biggest concerns expressed by credit union executives is that in order to qualify for the guarantee their deposits in the corporates would have to mature at the Dec. 31, 2010 expiration of the program, as it is currently structured, according to Marquis.
