Transaction Account Guarantee Program Updates
By Deb Jost
On August 26, 2009, the FDIC adopted a final rule extending the Transaction Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program for six months, through June 30, 2010.
Insured institutions that were participating in the TAG program can continue in the program through June 30, 2010. Institutions that did not wish to continue in the program needed to submit an opt-out to the FDIC on or before November 2, 2009. The election to opt out will take effect on January 1, 2010.
Although the Temporary Liquidity Guarantee Program does not fall under the "compliance" focus for Bankers Compliance Consulting, we do want to remind financial institutions currently participating in the TAG program to review your disclosures and modify them as necessary to ensure that they will be accurate after December 31, 2009.