Senate Passed Bill Funding Corporate Bailout

Senate Passed Bill Funding Corporate Bailout
May 7, 2009 – Randall C. Smith, Managing Editor

With a vote of 91-5 the Senate overwhelmingly passed the bill that included the corporate stabilization fund. The bill also extended share insurance coverage on accounts up to $250,000 through 2013. This gives the NCUA $6 billion in borrowing authority and $30 billion in emergency authority.

The corporate stabilization fund is financed from a line of credit through the Treasury Department and must be paid back over the next seven years. Natural persons credit unions will pay an assessment between 8 and 20 basis points per year over the next 7 years.

The bill now moves to the House where a committee will work out the differences between the two bills.

NCUA Statement