October 3, 2008
UPDATE: Increase in Insurance included in Economic Stabilization Bill

On October 1, 2008, the US Senate passed by 75 to 24 their version of an economic rescue package. Notably for credit unions, this legislation includes a temporary increase in the federal deposit insurance limits for both banks and credit unions -- from $100,000 to $250,000 per account, expiring 12/31/09.

The Senate bill will likely be voted on by the U.S. House of Representatives by the weekend. Chances for passage are considered better than this past Monday's narrowly failed House vote of 228-205 on their own bill, although nothing is for certain given the fast, furious, and fluid environment of these past two weeks in Washington.

Credit Unions will certainly retain their parity with banks on deposit insurance if this bill passes. As news in the developments of this bill comes to light, we will keep you informed.