Letters to Reps Oxley and Frank Regarding Mark Up of HR1185, the Federal Deposit Insurance Reform Act of 2005
October 26, 2005
The Honorable Michael G. Oxley
U. S. House of Representatives
House Committee on Financial Services
Washington, D.C. 20515
Dear Chairman Oxley:
On behalf of the Credit Union National Association (CUNA), which represents nearly 9,000 credit unions and their 87 million credit union members, I would like to thank you on your efforts to provide credit unions with identical deposit insurance coverage as part of H. R. 1185, the "Federal Deposit Insurance Reform Act of 2005."
As you prepare Thursday's mark up, I want to remind you that CUNA has not taken a position on the specific level of deposit insurance coverage. Our primary concern is that it be identical for credit union accounts under the National Credit Union Share Insurance Fund (NCUSIF) as is provided by the Federal Deposit Insurance Corporation (FDIC). We are grateful that the bill does provide identical coverage.
We also agree with the National Credit Union Administration (NCUA) that similar treatment should be given to the insurance logo. We noticed that the measure includes language for FDIC logos that requires the statement "backed by the full faith and credit of the United States Government." Since credit unions enjoy the same status, we wish to express our concern that if a similar statement is not included in the bill for NCUA logos that the bill may unintentionally leave an impression there is a difference in insurance coverage and its safety, when there is not.
We respectfully request that you consider including a provision, with parallel insurance logo language, as provided your staff by the NCUA.
Please feel free to contact my staff or myself should you have any further questions or require any additional information.
Once again, thank you for taking our concerns under consideration.
Daniel A. Mica
President & CEO