Majority Leader Harry Reid's proposed two-year extension of the Transaction Account Guarantee has been put to a stop.
What caused the Senate to defeat the program with their procedural vote?
"Some blame a larger battle between the political parties over filibuster reform as well as a related push by credit unions to marry TAG with their business lending bill. Others said the Federal Deposit Insurance Corp.'s neutrality over extending a program the agency administers was a crucial obstacle," writes American Banker's Joe Adler.
"The procedural vote was a disappointment, but as an old baseball player I firmly believe in the saying, 'It ain't over till it's over'," said Camden Fine, the chief executive of the Independent Community Bankers of America. "We lost a procedural vote on a budget objection. We did not lose a vote on the merits of the bill itself. That game is still on."
TAG, originally created in 2008 by the FDIC to prevent liquidity scares stemming from the financial crisis, was extended through the Dodd-Frank Act to the end of this year.
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