WASHINGTON – Two lawmakers introduced legislation last week that would allow about 130 privately insured credit unions to join the Federal Home Loan Bank system, which is currently restricted to federally insured credit unions and banks and to insurance companies.
The bill was introduced by Rep. Steve Stivers, a Republican from Ohio, home of American Share Insurance, the only surviving private deposit insurer for credit unions, and by Rep. Andre Carson, D-Ind.
The privately insured credit unions have tried several times before to obtain access to the FHLBs, an increasingly important source of liquidity for credit unions, especially since the troubles of the corporate credit unions. The most recent time was in 2006 as part of the CU Regulatory Improvements Act, or CURIA.
