A Federal Deposit Insurance Corp. program that expanded safeguards for business bank accounts will probably expire at the end of this year after the U.S. Senate failed to advance a proposal for an extension.
A 50-42 vote on a procedural motion fell 10 short of the 60 needed to move forward on a two-year extension of the Transaction Account Guarantee Program, effectively killing it. The TAG program, introduced in the wake of the 2008 credit crisis, guarantees $1.5 trillion in non-interest bearing accounts above the FDIC’s general limit of $250,000. An initial extension is set to end Dec. 31.
The Senate vote was celebrated by the Credit Union National Association, which had lobbied against an extension.