Statement by Senator Jack Reed on National Credit Union Administration Decision
The National Credit Union Administration (NCUA ) has announced that it will require its members to publicly disclose when a credit union applies to exit the guaranteed federal deposit insurance system for a private insurance system.
WASHINGTON, DC -- Senator Jack Reed (D-RI), a member of the Senate Banking Committee, today stated, Consumers in my state know the perils of not having federal deposit insurance, and we want to make sure that others around the country do not have to go through what Rhode Island had to in the early 1990s. Todays action by NCUA, is a step in the right direction to ensure that credit unions are fully aware of the requirements placed on them under Section 43, as well as a guarantee that credit union members receive adequate communications about the impact of terminating federal insurance.In a September 27, 2004 letter to the National Credit Union Administration, Reed wrote, [t]his issue is one that we take a personal interest in as Rhode Islanders. As you know, in 1991 the Rhode Island Share and Deposit Indemnity Corporation (RISDIC), a non-federal (private) insurer of state chartered credit unions and banks in Rhode Island failed and went into receivership. This touched off a banking crisis in Rhode Island that led the Governor to issue an executive order closing all institutions which RISDIC had insured.
