WASHINGTON – The Senate Banking Committee is expected tomorrow to add a provision that would enable NCUA to borrow up to $24 billion to legislation if will consider.
The panel is expected to include a provision which would expand the National CU Share Insurance Fund’s authority to borrow from the Treasury from the current $100 million to as much as $6 billion, and as much as $18 billion more on an emergency basis, according to individuals involved in the negotiations. The $18 billion emergency funding is less than the $30 billion limit NCUA is requesting.
The provision, one of several sought by NCUA to help fund the ongoing bailout of the corporate credit union system, is expected to be added to a bill likely to pass the banking committee which would reform credit card regulations..
The bill is one of several vehicles eyed by the credit union lobby to expand funding options for the corporate bailout. The separate vehicles are expected to be combined eventually into the deposit insurance reform bill which would make permanent the $250,000 coverage on all federally insured deposits and allow NCUA to stretch out a recapitalization of the NCUSIF to as long as eight years.
