This story appeared in Bank Digest.
The Federal Deposit Insurance Corp. has amended its Temporary Liquidity Guarantee Program (TLGP) regulations by extending the Transaction Account Guarantee (TAG) component of the TLGP for six months until June 30, 2010. The FDIC took this action to assure an orderly phase out of the TAG program. Each insured depository institution (IDI) that participates in the extended TAG program will be subject to increased fees during the extension period for the FDIC’s guarantee of qualifying noninterest-bearing transaction accounts. However, each IDI that is currently participating in the TAG program will have an opportunity to opt out of the extended TAG program. Each IDI that is currently participating in the TAG program must review and update its disclosure postings and notices to accurately reflect whether it is participating in the extended TAG program.