WASHINGTON -- Credit unions would be eligible to sell their distressed loans or mortgaged-backed securities to the government, under the current version of the $700 billion bailout plan unveiled by the Treasury Department and currently pending in Congress.
The provision, which was supported by the NCUA and the trade associations, is part of a bill that congressional leaders hope to pass by the end of the week.
CUNA President Dan Mica and NAFCU President Fred Becker both issued statements on Saturday praising the inclusion of credit unions but said the measure could change as it moved through the process.
"Based on our initial review of the draft legislation expected to be debated by Congress next week, it appears credit unions are included in the Treasury plan to protect the financial system, as we have been working to ensure over the last two days. There are still details to be clarified; however, at this stage, we are encouraged by what we have seen," Mica said.
"Credit unions did not engage in the type of activities that led to the current crisis, but they have not been immune and we believe it is paramount that credit unions are included in this unfrequented legislation," Becker said.