National News

FDIC proposes extension of transaction account guarantee

FDIC proposed alternatives for winding down the transaction account guarantee (TAG) portion of its Temporary Liquidity Guarantee Program. TAG is due to end Dec. 31, but FDIC is seeking public comments on a proposed six-month extension, which would keep the guarantee on non-interest-bearing transaction accounts in force until June 30, 2010. The extension would cost participating banks more money, as annual fees would rise to  25 basis points from 10 basis points. Participants that do not want the extension could opt out by Oct . . .

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