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Corker Expresses Opposition to TAG Extension; Could Derail MBL Strategy

Banks hoping Congress will extend the FDIC’s Transaction Guarantee Program are facing opposition from Sen. Bob Corker (R-Tenn.), who occupies a seat on the Senate Banking Committee. Corker penned an Aug. 2 letter to FDIC Chairman Martin Gruenberg that was critical of extending the temporary  program that provides unlimited federal deposit insurance coverage for  transaction accounts.

The NCUA provides a similar program for credit unions;  both are set to expire on Dec. 31. CUNA President/CEO Bill Cheney told  attendees at the trade association’s national conference in July that CUNA was attempting  to put together a congressional  packagethat would support extending the TAG program in exchange for  support of efforts to increase the member business lending cap.

However,  American Bankers Association Chief Lobbyist James Ballentine said the ABA would “adamantly  oppose” such a deal because an extension would likely also include the NCUA  assets program.

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Tags: Sen. Bob Corker, federal law, Member Business Lending, SB 2231

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