Community Bankers Association of Illinois

Wilmarth’s BankThink Op-Ed - Congress Should Extend TAG Coverage
October 24, 2012

In an American Banker BankThink article, George Washington University Law Professor Arthur Wilmarth Jr endorsed a minimum two year extension to the Transaction Account Guarantee (TAG) program. This popular program is set to expire at year-end and must be extended.

Wilmarth wrote that allowing the TAG program to expire will allow these deposits to quickly migrate to the biggest banks that are considered too-big-to-fail. “[The] federal government provided relatively little help to community banks and allowed hundreds of them to fail,” he wrote. “Is it any wonder that investors expect uninsured deposits to be fully protected at mega banks but not at smaller banks?”

Wilmarth continued that extending the TAG coverage would be a simple and effective way to help community banks fulfill their traditional role as the most reliable providers of outside credit to small firms. Wilmarth has been an active events participant in CBAI and is a great supporter of community banking. Read Wilmarth’s Op-Ed

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