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Federal Legislative and Regulatory Issues
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Temporary Liquidity Guarantee Program – Transaction Account Guarantee
The FDIC in June approved an final rule to extend the Transaction Account Guarantee (TAG) program to Dec. 31, 2010. Under the Temporary Account Guarantee (TAG) program, customers of participating insured depository institutions are provided full coverage on transaction accounts. The final rule reduces from 0.50 percent to 0.25 percent the interest rates on qualifying NOW accounts offered by banks participating in the program. The TAG assessment reporting will be based on average daily account balances, but there are no changes to the assessment rates for participating institutions. Under the rule, the program could be extended -- without further rulemaking -- for a period of time not to exceed December 31, 2011. Related to possible extensions, House and Senate conferees on the regulatory reform legislation this week agreed to a provision that would extend the TAG Program for two years beyond the Dec. 31, 2010, expiration date.
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GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen |
