Two corporate credit unions were siezed by federal regulators in order to protect deposits. The credit unions in question, US Central Federal Credit Union and Western Corporate Federal Credit Union, were merely clearinghouses which offered loans and services to retail credit unions. Both credit unions were at risk, but the deposits were always protected by the NCUA for up to $250,000.
Members of Credit Unions should not be alarmed at this news. This is a case of the NCUA working for you to protect your money. The National Credit Union Association (NCUA) insures credit union deposits the same way the FDIC insures bank deposits. Both have increased their coverage from $100,000 to $250,000 until December 31, 2009. As long as your credit union is covered by the NCUA, your deposits are safe.
Tropical Financial Credit Union is federally insured by the NCUA for up to $250,000.
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