WASHINGTON (CN) – The Federal Deposit Insurance Corporation has finalized rules extending the Transaction Account Guarantee program, under the Temporary Liquidity Guarantee Program which gives unlimited backing to transactions involving non-interest bearing accounts.
The coverage for transactions is in addition to the standard FDIC deposit insurance of $250,000 per account.
The new rules allow the Board of the FDIC to extend the program until Dec. 31, 2011 without further rulemaking or administrative hearings if the agency determines that economic conditions warrant an extension.
The FDIC insures deposits at 8,000 member institutions with over $13 trillion in assets. The insurance fund reimburses customers for deposits of up to $250,000 when a bank fails.
The Temporary Liquidity Guarantee Program was created in the midst of the financial crisis to get credit markets moving.