Alert June 29, 2010

FDIC Adopts Final Rule Extending the Transaction Account Guarantee Program

The FDIC Board of Directors adopted a final rule (the “Final Rule”) that extends the Transaction Account Guarantee (“TAG”) Program from June 30, 2010 to December 31, 2010 for insured depository institutions currently participating in the TAG Program.  The TAG Program provides customers of participating banks with full deposit insurance coverage on transaction accounts.  The Final Rule gives the FDIC Board of Directors the option to extend the TAG Program until December 31, 2011 without further rulemaking.  For background on the proposed versions of the Final Rule, please see the April 13, 2010 Alert and the June 30, 2009 Alert.