Dec. 29, 2008


  • There is no way that this increased share insurance is only going to be temporary. I'd bet on a premium increase.
  • Although the legislation said there would be no deposit insurance premium increases directly as a result of this higher limit, the current loss experiences at FDIC and NCUSIF may trigger increases anyway. On Tuesday, October 7, the FDIC more than doubled the premium for a low risk bank. Pundits are also already placing bets on whether the “temporary” $250,000 deposit insurance coverage level will remain temporary. It is difficult to believe that consumers’ and small business owners’ confidence will be so radically improved one year from now that the coverage can be rolled back without negative reaction. Credit unions would be smart to include an additional NCUSIF capitalization in their 2009 – 2010 budgets.
    Marvin Umholtz
  • Chip - It was my understanding that because the coverage is temporary, NCUA can neither require the 1% "capitalization" nor can they charge us a premium based on the higher reserve. What I do think this means is that we will have to do more reporting so NCUA knows where the $100k and $250k coverage points are at. If NCUA makes larger pay-outs of failed credit unions at the $250k level, that's where I see we may be at greater risk of being charged a premium. I have confirmed this from a few sources - I would hope that to be the case, since the increased coverage is temporary.
    Jeff Hendrickson
  • Govermentts keep passing on debt to banks; banks in bed with government i.e. bailouts. The oligarchy (international mobster bankers) want a one world government with a one world currency. USA bailouts, Cyprus, Italy etc bail ins - people committing suicide etc. The oligarchy want it all and they want to swallow up the credit unions and community banks i.e. You are in their sights. A financial reset is on the cards. A look at the deficits of most countries is beyond recovery, as was planned. This 250K won't cover a crisis and the factor of Italy, Cyprus is already proof of the evil. G20 (evil) and the whole of Europe and now Australia etc; all done under the table and not letting people know, Why? Corruption and evil, especially for the coming collapse. The people running this planet are luciferians, evil to the core; willing to commit genocide continually. Looks like precious metals, some cash and betting against the stock market is what is left. Of course you will try to obfuscate regarding your customers; better that you make preparation for your customers, looking to take out insurance with something that will sustain a MAJOR catastrophe.
    David Knox