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Inside Washington (10/10/2008)

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* ALEXANDRIA, Va. (10/13/08)--National Credit Union Administration (NCUA) Chairman Michael E. Fryzel is scheduled to appear Tuesday on the Fox Business Network’s “Money for Breakfast” program. The agency said Fryzel will discuss the recently-passed Emergency Economic Stabilization Act, which includes the increase in National Credit Union Share Insurance Fund (NCUSIF) coverage, as well as the current state of the economy and its relation to credit unions. The segment will air between 8-9 a.m. ET... * WASHINGTON (10/13/08)--The Treasury Department has received several proposals for its $700 billion rescue program from several large banks (American Banker Oct. 10). Bids for the program were due Wednesday evening, and the Treasury plans to make selections this week. Bank of New York Mellon Corp. and State Street Corp. bid on custody services and record-keeping, and BlackRock Inc. and Pacific Investment Management Co. bid on troubled mortgage-backed securities. The securities comprise the larges portion of the bailout. UBS AG analysts predict that the Treasury will begin purchasing mortgage assets within six to eight weeks ...

House panel slates hearing on regulatory oversight

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WASHINGTON (10/13/08)--The House Financial Services Committee said it will hold a hearing to address the need for “broad regulatory restructuring and reform for the financial markets, including financial institution oversight and regulation, systemic risk, and housing finance.” The hearing is scheduled for Oct. 21. No witnesses were announced. The hearing is a continuation of two hearings held by the committee in July focused on regulatory restructuring and systemic risk, which the committee heard from regulators, according to a statement from the panel. The Oct. 21 hearing will “focus on the extent to which an outdated and weak regulatory system contributed to the current market turmoil and whether adoption of a stronger and more robust financial regulatory system could contribute to a more rapid recovery in the financial markets and the economy.” Specifically, the hearings will examine:
* Current state of the financial regulatory system, both in the United States and abroad, and ways to measure and limit risk without stifling innovations while improving market liquidity and breadth; * The implications of current governmental lending and support facilities for the regulatory structure; * Proposals to improve the regulatory structure to restore confidence in financial markets and institutions through a stronger system of regulation and oversight; * The need for enhanced capital and reserve requirements for financial firms; and * The adequacy of current powers and coverage of the existing regulatory structure.
The Credit Union National Association will be following the hearings closely.

Share Insurance 101 PowerPoint available

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ALEXANDRIA, Va. (10/13/08)--The National Credit Union Administration (NCUA) has posted its expanded Share Insurance 101 Webinar PowerPoint presentation on its website in several locations. The complete archived presentation will be available later, said the agency. NCUA described the presentation as “essential information providing the fundamentals of share insurance that credit unions and members will find beneficial.” It was hosted by board member Gigi Hyland and attracted more than 3,000 participants. The webinar provided a basic review of federal share insurance regulations and operational considerations, as well as the NCUA's available resources on share insurance. Frank Kressman, of the NCUA’s office of general counsel, did a walk through of the share insurance rules in which he provided a description of the coverage available for various types of accounts, as well as suggestions on how credit unions could structure accounts to provide maximum insurance coverage to their members. Robert Leonard, of the agency’s office of examination and insurance, discussed the health and stability of the National Credit Union Share Insurance Fund (NCUSIF), as well as the reputation and compliance risk associated with it. Hyland told participants that the NCUA wants credit unions to update their share insurance signs to reflect the higher coverage level “as soon as possible.” Under the recently passed economic rescue package, the $100,000 insurance limit on share and deposit accounts was raised for one year to $250,000. She encouraged credit unions to utilize downloadable signs available on the NCUA's website, which have been updated to reflect the increased coverage. Leonard added that the NCUA would like for the upcoming December 5300 Call Reports to reflect both the $100,000 coverage amount, as well as the $250,000 coverage currently in place. Use the resource links below to access the PowerPoint.

Bush again highlights CU share insurance in speech

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WASHINGTON (10/13/08)--For the fourth time in two weeks, President George W. Bush included federal credit union share insurance in public remarks. In a speech broadcast from the Rose Garden Friday, Bush spoke to shore up consumer confidence in the ailing economy. He addressed federal deposit and share insurance directly. “Some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration have significantly expanded the amount of money insured in savings accounts, and checking accounts, and certificates of deposit,” said Bush. “That means that if you have up to $250,000 in one of these insured accounts, every penny of that money is safe,” he added. The Credit Union National Association (CUNA) has urged the White House at the highest levels to mention credit union share insurance in all statements about financial institution safety and soundness. Access the complete White House transcript using the link below.