ALEXANDRIA, Va. -- Saying his agency lacks the statutory power to do it, NCUA Chairman Michael E. Fryzel today asked Treasury Secretary Henry Paulson to give non-interest bearing accounts at credit unions the same unlimited deposit insurance as those accounts have at banks.
"Based on the belief that the policies of the National Credit Union Share Insurance Fund (NCUSIF) should be generally consistent with those of the FDIC, I believe that there should be full share insurance coverage for non-interest-bearing transaction accounts temporarily through 2009," Fryzel wrote Paulson.
Earlier this month, as a way to assure businesses about the safety and soundness of banks, the Treasury Department removed the limits on insurance coverage for non-interest business accounts.
NCUA quoted from, but declined to release the full text of Fryzel's letter.
Fryzel noted the importance for consumers in "the federal government creating a uniform regime regarding insured deposits."
