Regarding the more practical aspects about the increase in deposit insurance coverage; Namely, what will credit unions have to do?
Chances are, credit unions will want to get the word out as quickly as possible about the increased coverage. Today, NCUA announced it is changing all of its information related to share insurance on its website, including an updated version of the official “insured status” sign. CUNA is coordinating with NCUA on this. We will be providing additional information about it and other aspects of the bill to our members this afternoon. Three related points from our compliance staff: –The increase to $250k is temporary (as noted, running until Dec. 31, 2009). But we are sure the regulator will not expect you to advertise this temporary status (understandably causing confusion among members). Further, as indicated, Congress will likely be revisiting the “temporary” issue. –Insurance coverage can actually be much more than $250k. The rules on how account ownership can increase coverage – such as by use of joint accounts and trust accounts – are not being changed. –Finally, be reminded that
