The NCUA Board today extended its program to guarantee the deposits of credit unions in corporate credit unions to accommodate a two-year rolling expiration date.
During its executive session following an open meeting, the board voted to provide the option of quarterly extensions through December 2012.
"The action of the NCUA Board sends a clear signal to natural person credit unions that their investments in corporate credit unions are not only safe, but also meet sound asset liability management principals by providing for orderly laddering of these investments. It is important that they continue to provide the liquidity that is needed to maintain corporate stability," NCUA Chairman Michael E. Fryzel said in a statement.
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As part of the corporate stabilization plan announced in January, the NCUA agreed to guarantee all deposits in corporate credit unions through the end of 2010.
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