Media Advisory

FOR IMMEDIATE RELEASE

NCUA Initiatives Respond to Member Insurance Questions

Alexandria, Va., September 30, 2008 – The National Credit Union Administration (NCUA) is undertaking a three-pronged approach this week to ensure that members of federal and most state-chartered credit unions are aware their accounts are insured by NCUA and backed by the full faith and credit of the U.S. Government.

“Understandably, consumer confidence in our financial structures has been shaken by recent turmoil in the markets,” said NCUA Chairman Michael E. Fryzel. “Federally insured credit unions remain a safe and sound alternative, and I will do everything in my power as Chairman of the National Credit Union Administration to make certain that accurate and useful information about the National Credit Union Share Insurance Fund is available.”  

Three initiatives that will commence this week include:

• Chairman Michael E. Fryzel will assure credit union CEOs via video that federal insurance remains safe and secure. He will encourage CEOs to assuage member concerns and encourage use of available tools, such as the NCUA’s electronic Insurance Tool Kit, to help members understand their federal insurance protection.

• NCUA is distributing three large posters to each federally insured credit union to post in the lobby and will have the poster available to download for electronic use. The vivid red, white, and blue “Uncle Sam” poster is designed to ensure members understand “This Credit Union Is Federally Insured.”

• A media campaign will kick-off with the placement of similarly themed “Uncle Sam” advertisements in many of the nation’s major newspapers, to assure credit union members and the general public that most credit union member accounts are federally insured. The ads are scheduled to begin to appear this Thursday in the USA Today newspaper.

“There is too much at stake to allow misleading, incomplete or wrong information about NCUSIF insurance remain uncorrected, and I am making these tools available as a starting point to a larger effort to help consumers through these difficult and uncertain times. Working together, NCUA and the industry can provide an important public service, and I call upon credit union volunteers and professionals to do their part to help members understand how their credit union funds are federally insured.”

The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 89 million accounts in all federal credit unions and the overwhelming majority of state-chartered credit unions.