Media Advisory

FOR IMMEDIATE RELEASE

Chairman Fryzel Statement On Senate Passage Of Share Insurance Increase

Alexandria, Va., October 2, 2008 – NCUA Chairman Michael E. Fryzel expressed his appreciation today for key provisions of the compromise economic stabilization legislation approved by the U.S. Senate yesterday evening.

The measure, passed by the Senate, includes a temporary increase in insurance limits for accounts backed by the National Credit Union Share Insurance Fund (NCUSIF), increasing share insurance coverage from $100,000 to $250,000. The increase is effective from the date of enactment through December 31, 2009. The boost in insurance coverage is the same as that provided for the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits.

“Enhancing federal insurance coverage for credit union members sends a positive message of reassurance during troubling economic times. Recent market events have shaken the confidence that many Americans have in our system of depository institutions, and I appreciate the steps the Congress has taken to address those concerns,” said Fryzel.

“I also am pleased with technical changes that the Senate included at the NCUA’s request to reflect differences between the way the credit union and banking insurance funds are structured, as well as the inclusion of the NCUA in the consultation process with the Treasury Department in the establishment of the Troubled Asset Relief Program.” The legislation explicitly authorizes credit unions to participate in the Asset Relief Program, should they so choose.

“I specifically want to thank Chairman Dodd, Minority Leader McConnell, Majority Leader Reid, and Senator Gregg for their strong leadership on this issue,” Fryzel continued. “And I am grateful for the critical support we have received during this process from House Financial Services Committee Chairman Frank and Ranking Member Bachus, and I look forward to working with them to see these provisions enacted into law.”

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

-NCUA-