Community bankers are fighting a battle along two fronts over the Transaction Account Guarantee program: trying to get TAG extended while at the same time searching for new sources of liquidity should the program end.

The banking lobby is working feverishly to keep the program going beyond its current Dec. 31 expiration date, and lobbyists say congressional leaders are seriously considering an extension. The program, created by the Federal Deposit Insurance Corp., provides unlimited federal backing for noninterest-bearing deposits.

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