just over six months to go until the December 31 expiration of full FDIC
coverage for non-interest-bearing transaction accounts, IBAT is stepping up the
efforts to gain support for five year extension of the program. First
crafted by the FDIC in October 2008, the Transaction Account Guarantee (TAG)
program was meant to stabilize the banking system and protect depositors.
In 2010, Congress, with bi-partisan support, modified and extended the
coverage for two years.
full coverage of these deposits provides a counter-balance to Congress'
failure to end the implied "too big to fail" de facto protection of
deposits at the largest American banks, providing small businesses with
confidence to keep their transaction accounts with community banks.
has drafted letters to the Texas Congressional delegation
urging their support on this issue and is currently distributing a letter to the editors of Texas newspapers to raise
awareness of this issue among the small business community.