FOR IMMEDIATE RELEASE
ICBA Victory: FDIC Extends TAG Program
Vital Program Helps Main Street Community Banks Continue to Serve Their Customers
Washington, D.C. (April 13, 2010)—The Independent Community Bankers of America (ICBA) commended the FDIC today for extending its Transaction Account Guarantee Program (TAG) until Dec. 31, 2010 with the opportunity for an additional, 12-month extension. The association has been a leading advocate for the TAG extension.
“ICBA, the nation’s voice for community banks, thanks the FDIC for extending the TAG program, which has been a vital source of stability for many of our nation’s Main Street community banks,” said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank, Schoolcraft, Mich. “The TAG program has been especially helpful in the communities that were hardest hit by the economic downturn. Extending this vital program will help community banks continue to serve the needs of their communities during this critical time.”
The TAG program has been an important source of stability for community banks with large transaction account balances. Since its inception, the program has garnered significant participation and approximately $700 billion in transaction accounts subject to the FDIC guarantee, which otherwise wouldn’t be insured. Additionally, the TAG program has been a significant source of much-needed stability for small business customers and municipalities across the nation.
In March, ICBA urged the FDIC to extend the TAG program, stating that it helps even the playing field by providing community banks the same opportunity as large too-big-to-fail banks to guarantee their customers’ transaction accounts. That same month, 33 community bank state associations also sent a letter to the FDIC urging the extension of the program.