Preparation required Following Disappointing TAG Vote

December 18, 2012

Earlier this month the United States Senate failed to advance legislation that would extend the Transaction Account Guarantee (TAG) program. Although the TAG measure cleared the first procedural hurdle by a comfortable 70-22 vote, it failed on the second vote by not receiving the required three-fifths majority.

While there are still some limited opportunities to advance this important legislation by year-end, community banks must brace for the possibility the program will expire. The FDIC has issued a FIL on how to notify customers in the event the TAG is not extended. See FDIC Release.

Illinois Senator Richard Durbin voted in favor of the two motions to move the legislation forward, but Senator Kirk did not vote as he is still recovering from a stroke suffered earlier this year.