RANCHO CUCAMONGA, Calif. — The California and Nevada Credit Union League's research and information hotline has been ringing off the hook this week with calls from member credit unions seeking to clarify NCUA share insurance details, said Henry Kertman, vice president of public affairs.
IndyMac bank customers made headlines when they lined up outside the failed Countrywide spin-off earlier this week, clamoring to withdrawal deposits and demanding information about the fate of deposits in excess of FDIC coverage. Media outlets in Southern California are reporting the incident has prompted some worried consumers to withdraw funds from other troubled banks in the region, including Downey Savings, First Federal Bank and Washington Mutual.
"Because credit unions are hearing from members, many have posted statements about NCUA insurance on their Web sites, others have sent notices to members, and some are conducting meetings with staff to make sure they're up to speed on insurance, safety and soundness," Kertman said.
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The leagues have initiated an aggressive media campaign to educate press in both states about the NCUSIF and the industry's overall strength. Industry representatives have been sourced in a number of media outlets this week, he said.
The league has also provided talking points, Web site links and other assistance to credit unions, encouraging them to be proactive in educating members about the NCUSIF.
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