Senate Majority Leader Harry Reid (D-Nev.) introduced a bill (S. 3637) that would extend the Transaction Account Guarantee (TAG) program—slated to expire on Dec. 31—for two more years through 2014.
Reid's legislation would make one key change in the program. TAG's current costs are incorporated into the FDIC's regular assessments, but S. 3637 would require the agency to estimate the program's losses separately and collect additional fees to offset them.
While Reid introduced his bill with no co-sponsors and did not explain how he hopes to advance it, ABA believes the majority leader's involvement gives the effort to extend the TAG program added credibility.
The TAG extension is more likely to pass if it is attached to another legislative vehicle with bipartisan support—such as a year-end tax measure—rather than as a stand-alone bill.
ABA, however, will adamantly oppose any attempt to combine the TAG extension legislation with Sen. Mark Udall’s (D-Colo.) bill (S. 2231) that would more than double the business-lending cap for certain credit unions.