NCUA Board Approves Corporate Stabilization Efforts

On January 28th, the National Credit Union Administration ("NCUA") announced a program under which it will temporarily guarantee $80 billion in uninsured member shares or deposits at wholesale or corporate credit unions [http://www.ncua.gov/news/press_releases/2009/MR09-0128.htm]. Uninsured shares are generally those in excess of the Standard Maximum Share Insurance Amount on the date of a particular corporate credit union's liquidation, which amount is currently $250,000. Corporate credit unions provide investment, liquidity and clearinghouse services to consumer-owned "retail" credit unions. Credit union deposits are insured by the National Credit Union Share Insurance Fund ("NCUSIF"), a fund overseen by the NCUA. The temporary guarantee will apply to member shares in all corporate credit unions through February of 2009 and will extend on a voluntary or "opt-in" basis to corporate credit unions through December 31, 2010. A Fact Sheet for the program is available at