Just days after the Senate's top Democrat, Harry Reid, proposed a two-year renewal to the Transaction Account Guarantee program, a leading Republican on the Senate Banking Committee came forward and said he plans to oppose the extension.
Sen. Bob Corker, R-Tenn., said in a press release "It's time to move beyond this period of unprecedented government support of the banking industry, and so I am opposed to any more extensions of this limitless guarantee program."
The press release "noted that, although community banks have been most vocal about needing a TAG extension, data indicate larger institutions benefit from the program," writes American Banker's Joe Adler.
Community banks believe that when TAG expires, which was originally extended under the 2010 Dodd-Frank Act, depositors may seek other destinations to store their money.
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