Expiration of the Temporary Account Guarantee (TAG) Program
During the worst of the
financial crisis, the FDIC instituted a program to temporarily provide
unlimited insurance for certain large, noninterest-bearing transaction
accounts and Interest on Lawyers Trust Accounts (IOLTAs). The Dodd-Frank
Act authorized continuation of the program, called the Transaction
Account Guarantee program (TAG) at no cost for participants until Dec.
31, 2012. Congress failed to pass industry-supported legislation to
extend the program.
FDIC recently provided guidance about notifying customers about the
Here's a link to
that guidance. Also, in communicating with customers,
there are also several points to consider sharing with them that may
GBA is also asking our
members share with us alternatives you're considering. We already know
some bankers are looking again at Federal Home Loan Bank Letters of
Credit and Promontory's CDARs program. If you're considering something
please let us know.
With questions or ideas, contact
GBA's professional staff represents the membership at the state and federal levels. Contact any of them with questions about issues: