The Credit Union National Association is urging Senate leaders not to pass an extension of the Transaction Account Guarantee program.
CUNA "suggests that instead of a TAG extension, which smaller banks argue could provide liquidity so they can make more loans, Congress should take up the credit union industry's own bill to boost business lending," writes American Banker's Victoria Finkle.
Bill Cheney, president and chief executive of CUNA wrote in a letter to Senate leaders, "Congress should allow TAG to expire because it is no longer necessary; it is risky."
The Federal Deposit Insurance Corporation originally created TAG in 2008 to guarantee non-interest-bearing deposits in response to liquidity fears brought on by the financial crisis. The program was later extended to the end of 2012 as part of the Dodd-Frank Act.
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