Transaction Account Guarantee program will not be extended Earlier this month, the U.S. Senate was mired in debate concerning the Transaction Account Guarantee program. This program was created at the height of the U.S. financial crisis as an attempt to provide banks with protection against the volatile economic climate. The program provided federal insurance coverage for deposits kept in non-interest bearing bank accounts. This program successfully increased the financial activity that banks saw during the financial crisis, but the program has failed to receive the support it needed to be…
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Transaction Account Guarantee program up for extension
Senate debates extending Transaction Account Guarantee program The U.S. Senate has taken up legislation regarding the Transaction Account Guarantee program, a federal initiative designed to protect certain non-interest bank accounts with insurance coverage. The program was developed in the height of the economic recession as a way to protect small banks while larger institutes either failed or were bailed out by the federal government. The program has been considered a boon for small, community-based banks that would have collapsed without adequate insurance protection. Program could continue to protect small banks…
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