A bill to extend the Transaction Account Guarantee program (TAG) beyond the December 31, 2012 deadline for an additional two years failed yesterday in the US Senate. The TAG Program was introduced in October 2008 as part of a comprehensive government effort to stabilize the US banking system as the financial crisis began to unfold.  Under the TAG program all noninterest-bearing transaction accounts were fully guaranteed by the FDIC for the entire amount in the account.
Coverage under this program was in addition to and separate from the coverage available under the FDIC’s standard deposit insurance maximum of $250,000 per depositor. Expiration of the program means that any funds on deposit beyond the $250,000 limit per depositor will not be insured by the FDIC regardless of account type.
“This doesn’t change anything for our customers, “ said Paul Moxley, CEO of Texas Regional Bank. “Texas Regional Bank is a strong and sound bank and your money is secure with us”. Named as one of the safest 359 banks by MSN Money earlier this year Texas Regional Bank was the only bank in the Valley to receive this recognition.