NCUA Extends Guarantee of Deposits in Corporates
Deposits in corporate credit unions will be guaranteed for an additional three months.
The NCUA extended its Temporary Corporate Credit Union Share Guarantee Program through Dec. 31, 2011; it had been set to expire Sept. 30, 2011.
As a result of the agency's decision, new investments with maturities of two years or less in participating corporate credit unions made before Dec. 31, 2009 will be fully covered by the guarantee program. This is in addition to the existing deposits already covered.
In January, the agency launched the deposit guarantee program as a way to bolster the strength of the corporate credit unions while also injecting $1 billion of capital into U.S. Central Federal Credit Union.