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TAG Extension Decision Based on Thoughtful Deliberation

American Bankers Association article republished:

07.31.12

In related news, the ABA Board of Directors' decision to support a two-year extension of the Transaction Account Guarantee program was the result of thoughtful deliberation by the association's banker leaders, ABA President and CEO Frank Keating said Friday in a Washington Perspective column.

"Officers discussed TAG with bankers from Florida to Oregon and everywhere in between as they attended state association conventions this spring," Keating wrote. "Our Community Bankers Council and Government Relations Council also weighed the likely pros and possible cons."

While bankers’ views varied -- often based whether their state was still suffering from the recession -- a consensus emerged. "It became clear that all would ultimately benefit from an extension, since it would reduce uncertainty for businesses, promote economic stability and facilitate the recovery," he said.

Keating explained that ABA is backing an extension that would benefit banks and credit unions equally, but any bill authorizing such an extension will not be used to increase credit union business lending authority, "A quid-pro-quo is out of the question, as ABA’s board made clear ... ," he said. "We’ll make this clear with Congress, too, as we begin to seek sponsors and support for a TAG bill." Read Keating’s column.

To read more ABA Newsbytes visit www.ABA.com.