Regulators Propose New Private InsuranceDisclosures
WASHINGTON - (03/11/05) -- After 15 years, the Federal TradeCommission voted Wednesday to issue for comment rules regulatingdisclosures for privately insured credit unions. The rules willrequire, among other things, that disclosures prominently explainthat accounts at privately insured credit unions are not insured bythe federal government and the risks involved if the insurer fails.The proposal comes after the General Accountability Office issued areport last year finding large deficiencies in member dislosures atprivately insured credit unions. The FTC was originally required toset the rules under the 1989 FDIC Improvements Act but the ruleshave been stalled since then by congressional appropriators who didnot want the FTC expending resources on them. The proposeddisclosures, issued for a 90-day comment period, will cover about205 credit unions insured by ASI of Dublin, Ohio.