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FDIC extends deposit insurance program to Dec. 31

The board of the Federal Deposit Insurance Corp. agreed Wednesday to extend the Transaction Account Guarantee program from June 30 to Dec. 31.

Under the TAG program, customers of participating insured banks are provided full coverage on non-interest bearing accounts greater than $250,000, according to a news release.

The program may be extended again, if economic difficulties warrant it, through Dec. 31, 2011, without further rule making, the release stated.

“It’s necessary to extend the TAG program because the lingering effects of the financial crisis that emerged in 2008 in large systemically important banks have now spread to institutions of all sizes, particularly in regions suffering from ongoing economic weakness,” FDIC Chairman Sheila Bair said in the release.

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