ABA Works to Foist New Assessment on NCUSIF
Yesterday's financial services regulatory overhaul deal to force banks to fund the FDIC's return from a 1.15% equity ratio to 1.35% has the American Bankers Association asking what about the NCUSIF.
ABA President/CEO Edward Yingling stated that the banks have paid tens of billions of dollars to maintain the integrity of the FDIC, but traditional banks would be paying for a financial crisis they did not cause. He claimed the FDIC is being used to offset costs of other government programs.
Yingling added, that if this will be the course for the FDIC, the NCUSIF should be treated the same. The NCUSIF equity ratio has been hovering near its 1.2% floor.
"It's surprising they'd have the time to think about [the NCUSIF] given the difficulties of their industry lately," John McKechnie, NCUA director of public and congressional affairs, said. "There's no policy reason behind what they're saying."
When asked about the parity with the FDIC that the NCUA successfully sought under his lead regarding unlimited coverage of noninterest bearing accounts, McKechnie explained that the funding and structures of the two funds are different so it's not an apples-to-apples comparison.