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.