President's pen turns corporate stabilization bill into law

WASHINGTON (5/21/09)—In a ceremony held at the White House on May 20, President Barack Obama signed S. 896, the Helping Families Save Their Homes Act, into law.

CU League of Connecticut President/CEO Tony Emerson (pictured left, at White House) attended the bill-signing ceremony for S. 896 as a guest of cosponsor Sen. Christopher Dodd (D-Conn.) CUNA President/CEO Dan Mica said that Emerson's invitation by Dodd is a "perfect illustration of the vital role state leagues have in advocacy for the CU movement." (Photo courtesy of Sen. Dodd's office)
Of interest to credit unions are portions of the bill that will create a corporate credit union stabilization program to help credit unions weather the ongoing financial crisis and extend the $250,000 share and deposit insurance coverage ceiling through 2013.

Credit Union League of Connecticut President/CEO Tony Emerson attended the signing ceremony as a guest of S. 896 cosponsor Sen. Christopher Dodd (D-Conn.)

The House and Senate approved the bill on May 19.

Under S. 896, the National Credit Union Administration's (NCUA) borrowing authority will be extended to $6 billion, with a possible further extension to $30 billion under exigent circumstances.

Credit unions may also spread the cost of National Credit Union Share Insurance Fund (NCUSIF) replenishment over a longer period of time, with a total of eight years to deal with the cost of a premium assessment that has resulted from losses at wholesale corporate credit unions. Any impairment related to the NCUSIF replenishment may be booked over a seven-year period.

Representatives from CUNA, the NCUA, and other industry groups also discussed the corporate credit union stabilization plan in a hearing before the House Financial Services subcommittee on financial institutions and consumer credit.

President Obama will have more on his desk by Memorial Day, as the House today voted 361 to 64 to approve H.R. 627, the Credit Cardholders' Bill of Rights. Once enacted, the bill will rein in many abusive or deceptive credit card practices.

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NCUA's Corporate Stabilization Plan


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