The FDIC issued a notice of proposed rulemaking (the “NPR”) seeking comment on two alternatives for the conclusion of the Transaction Account Guarantee Program (“TAGP”), a component of the FDIC’s Temporary Liquidity Guarantee Program. The TAGP provides an unlimited FDIC guarantee for deposits in noninterest-bearing transaction accounts at banks and thrifts that participate in the TAGP.
The first proposed alternative would not change the FDIC’s current regulation. Under this alternative, the FDIC’s guarantee for deposits held in qualifying noninterest-bearing transaction accounts would expire on December 31, 2009. There would be no increase in fees for this coverage.
The second proposed alternative would extend the TAGP for six months, until June 30, 2010, and annual fees would be increased from 10 basis points to 25 basis points during the extension period. The second proposed alternative also would provide insured depository institutions participating in the TAGP with a one-time opportunity to opt out of the extended TAGP on or before October 31, 2009.
Comments are due no later than July 30, 2009.