Bank TAG Vote Scheduled for December 10 - Credit Unions Urged to Act
Credit unions from Missouri took part in National Hike the Hill on November 27-28 to urge members of Congress to take action on member business lending legislation. At the time, combining MBL with other legislation – including the banks’ Transaction Account Guarantee Program (TAG) – was an option shared with U.S. Senators.
Things have changed. The banks are now taking their TAG extension bill to the Senate floor – WITHOUT MBL. The vote to bring TAG to the floor will take place on Monday, December 10. The Missouri Credit Union Association is asking you to send a specific message to Missouri’s U.S. Senators: No vote on the TAG extension without a vote on MBL.
- Email Senators using the Grassroots Action Center
- Call Senators Claire McCaskill and Roy Blunt at 202-224-3121
- Banks have had plenty of help from Congress, yet they aren’t lending to the small businesses that need them.
- During the financial crisis, small bank small business lending decreased 15% while credit union small business lending expanded 45%. The TAG program did not encourage banks to lend to small businesses.
- There are better options available for Congress to help small business: small businesses need banks and credit unions to provide access to credit. If Congress decides to continue to provide taxpayer backed insurance over large deposits, then Congress should also permit experienced, well-managed credit unions to continue to lend to small businesses by enacting S. 2231, the Credit Union Small Business Jobs Act.
- Vote NO on S. 3637 unless it is combined with S. 2231, Credit Union Small Business Jobs Act
Background on TAG:
During the TARP era, the FDIC used emergency powers to extend unlimited deposit insurance coverage to noninterest bearing accounts at banks. This was used to maintain confidence in the banking sector during a time of crisis. During the Dodd-Frank Act, Congress temporarily authorized the FDIC to continue this coverage, and expanded the program to include credit unions as well through the NCUSIF. This program, called the Transaction Account Guarantee Program (TAG), expires at the end of the year.