In the letter, ABA President and CEO Frank Keating and his ICBA counterpart Cam Fine noted that when Congress extended the TAG program in 2010, policymakers had expected the economy to be on solid footing by year-end 2012. However, the economy is still fragile.
Businesses -- which have relied on the certainty of FDIC insurance to cover payroll accounts–are increasingly nervous about the path of the economy. Extending the TAG program for an additional two years will take at least one important piece of uncertainty off the table at year-end.They also emphasized that the banking industry has fully funded the TAG program with no taxpayer expense; TAG has a proven record during difficult times; and the program is still necessary to support businesses, municipalities, farmers’ accounts, and nonprofits.
It is for that reason that the National Association of Federal Credit Unions, 80 state banking associations, the Conference of State Bank Supervisors, the ICBA Minority Bankers Council, National Black Chamber of Commerce, National Bankers Association, a coalition of 16 bankers’ banks, the International Franchise Association, and the American Land Title Association have all expressed support for extending this program.Read the letter.