X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Extending the Transaction Account Guarantee program past its scheduled expiration on Dec. 31 seemed unlikely a few weeks ago, but the measure has a new champion in Senate Majority Leader Harry Reid, D-Nev., who has proposed extending the program for another two years.

Reid’s bill, S. 3637, would temporarily extend the TAG program, which provides unlimited Federal Deposit Insurance Corp. insurance on no-interest checking accounts used mainly by businesses. The senator introduced the stand-alone bill under Rule 14, which would allow it to bypass committee hearings and go straight to the Senate floor for a vote, indicating that it’s very likely to get approved.

The FDIC created the TAG program in the depths of the financial crisis in 2008 to protect against bank runs. Congress extended the program for two additional years in 2010 as part of Dodd-Frank. Without congressional action, FDIC insurance on these accounts will revert back to the original cap of $250,000 per account.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.