FROM DAN MICA: Spreading the word about CU deposit insurance

October 2, 2008 | COMMENTS

We are taking every opportunity at CUNA to remind lawmakers, policymakers, newswriters and TV’s and radio’s talking heads that not only do credit unions have federal insurance, but that federal insurance will increase to $250,000 once the new financial rescue legislation passes (by Friday).

At CUNA, we know how important this issue is to the movement - because continued member and public confidence in credit unions is at stake.

Just today, we have done the following:

• Participated in a conference call with Treasury Department officials and representatives of other groups to discuss the proposed federal insurance increase to $250,000, where we specifically urged the administration that it include in all of its statements, press releases and other comments the fact that the level of credit union federal insurance had also increased. Treasury officials responded they do not want to inadvertently create problems for credit unions, and agreed to ensure the NCUSIF is included in all future statements about the positive aspects of the FDIC.
• In fact, this morning (at 11:40 ET), White House Deputy Press Secretary Tony Fratto said in a live briefing that the federal insurance increase amendment is an "important improvement" and will "benefit" banks and credit unions across the county.
• Issued a press release to more than 500 news organizations and news outlets across the nation, pointing out that federal insurance at credit unions will also increase to $250,000 (as it will for FDIC-insured banks) once the Congress takes action on the financial rescue legislation, beginning this evening (by the Senate) and ending on Friday (by the House).
• Urged Leagues nationwide - as well as other groups of credit union supporters (marketers, communicators, CFOs) - to spread the word that credit unions will have the same level of federal insurance once the legislation passes. Further, we have urged all groups to share the word about credit union coverage anytime they read or hear a news report that only mentions banks, and leaves out credit unions.
• Distributed to radio stations across the country a soundbite for news reports about the financial rescue bill that virtually all credit unions have federal insurance.

We know that there is more work ahead of us over the next 48 hours. But, for now, our focus is on ensuring that credit unions are seen by the public -and, importantly, our members - as safe, sound and solid, with the same level of protection as banks.

Dan Mica
President/CEO
Credit Union National Association