Economic Rescue Package Raises Insurance Limits
The $700 billion Economic Rescue Package was signed into law by President Bush on October 3, 2008. As part of the package, both FDIC and NCUA insurance limits were raised to at least $250,000. This change affects both banks and credit unions, including Weber State Credit Union. Though Weber State Credit Union is in an excellent financial position (see President's message), members will gain additional peace of mind from the recent legislation.
As reported by CNN.com:
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The bill temporarily raises the FDIC [and NCUA] insurance cap to $250,000 from $100,000. The bill allows the FDIC to borrow from the Treasury to cover any losses that might occur as a result of the higher insurance limit.
Federal bank regulators, who first floated the idea to Congress late Tuesday, said that bumping up the insurance limits would help improve liquidity at banks across the country. It may also provide a much-needed dose of confidence for consumers who may be worried about the health of their bank. (More about FDIC rules.)
The bill will also temporarily increase the level of federal insurance for credit union savings to $250,000."
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