Alert April 13, 2010

FDIC Board Approves Interim Rule Extending Transaction Account Guarantee Program to December 31, 2010

The FDIC Board of Directors approved today an interim rule (the “Interim Rule”) that would extend the Transaction Account Guarantee (“TAG”) Program from June 30, 2010 to December 31, 2010.  The TAG Program provides customers of participating banks with full deposit insurance coverage on transaction accounts.  The Interim Rule gives the FDIC Board of Directors the option to extend the TAG program until December 31, 2011 without further rulemaking.  Banks that wish to opt out from the TAG program must do so by April 30, 2010.  Comments on the Interim Rule are due to the FDIC within 30 days of its publication in the Federal Register.