FOR IMMEDIATE RELEASE
Temporary Extension of Transaction Account Coverage Has Widespread Support as Congress Considers Extension
Fate of $1.5 Trillion in TAG Deposits with Congress
Washington, D.C. (December 7, 2012)–With Congress considering whether to extend full Federal Deposit Insurance Corp. coverage of noninterest-bearing transaction accounts, the Independent Community Bankers of America (ICBA) is reminding lawmakers of the more than 100 organizations advocating an extension. A variety of groups representing banks, credit unions, small businesses, regulators and farmers have joined ICBA in advocating for a temporary extension of the Transaction Account Guarantee program, which is scheduled to expire on Dec. 31 unless Congress acts.
“The overwhelming support for extending the TAG program is a testament to the stabilizing force this deposit coverage has been for the financial system and economy as a whole,” ICBA President and CEO Camden R. Fine said. “If Congress fails to extend this critical program before its Dec. 31 deadline, nearly $1.5 trillion in TAG deposits would become abruptly uninsured overnight. This will be a destabilizing blow to Main Street financial institutions and the communities they serve.”
Support for a temporary extension of TAG coverage has come from notable financial and business groups as well as the regulatory community, retail and farm groups, and the Conference of State Bank Supervisors, the National Association of State Treasurers and the Agricultural Retailers Association.