TAG Extension Could Be Losing Steam

Another two years of unlimited FDIC coverage is starting to seem unlikely, despite Reid's legislation.

The Transaction Account Guarantee extension, which both Credit Union National Association and National Association of Federal Credit Unions are pushing to package with member business lending legislation, could be losing steam in Congress despite the recent introduction of S. 3637 by Senate Majority Leader Harry Reid (D-Nev.).

On Nov. 27, The Financial Services Roundtable, an advocacy group representing the 100 largest financial services companies, said in a letter from President/CEO Tim Pawlenty to Reid and Minority Leader Mitch McConnell (R-Ky.) that not only have bank balance sheets improved since TAG was extended in 2010, continuing the program “may create the misperception of instability, at the very time that the financial services sector has made significant and positive reforms.”

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