Ending Government Bailouts (Updated)
By Sam Aydlette
The Transaction Account Guarantee, or TAG, is the government insurance program for credit unions and other non interest bearing accounts. Senate Majority Leader Harry Reid has proposed a vote on the Senate floor that would take a once temporary program a step closer to permanence by extending it for two years. A cloture vote on the motion to proceed is scheduled for Monday at 5:30 PM* . John Berlau explains the situation in his latest article:
“While waxing on about how Democrats want a “balanced approach” to deficit reduction, including for sacrifice by “the rich,” Senate majority leader Harry Reid has apparently slated a Senate vote as early as this Monday afternoon that would throw both priorities out of balance. The vote is on extending for another two years the Transaction Account Guarantee (TAG) program — unlimited government-guaranteed deposit insurance for non-interest bank and credit union accounts, over and above the $250,000 limit for all accounts. As I explained in National Review Online on Friday, bank lobbyists are now pressuring Congress to make this “temporary” program, enacted in late 2008 at the nadir of the financial crisis, more permanent.”
*UPDATE - This vote was postponed until Tuesday.