TAG Extension Fails to Advance in Senate Debate
- By Konstantine Kastens, Government Relations Administrator
- Published: 2012-12-13
The move to extend the Transaction Account Guarantee (TAG) program another two years failed in the Senate Thursday afternoon, following a procedural point of order brought up by Sen. Pat Toomey (R-PA). Senate rules require that a bill under consideration show not to incur new cost, and pay for itself.
TAG originated during the 2008 financial crisis to supplement liquidity and prevent bank runs, and was extended in 2010 under the Dodd-Frank Act. If Congress fails to extend the program, TAG will expire this month.
The bill amends the current program by requiring that TAG offset its own estimated losses through collected premiums, separate from those collected by the Federal Deposit Insurance Corporation (FDIC).
Introduced by Senate Majority Leader Harry Reid (D-NV), supporters of the bill contend that the program funds itself through the collected fees. However, opponents disagree that the program could fully sustain itself through fees alone. Reid brought the bill to debate Wednesday, blocking lawmakers from adding amendments to it. This move, opponents of the bill argue, forced them to raise a point of order. Short the 60 votes needed to override the budgetary point of order against S. 3637 extending the program, the bill failed 50-42 in the Senate.
Copyright © 2014 Association for Financial Professionals, Inc.
All rights reserved.
- Fed Signals End of QE ProgramThe Federal Reserve has indicated that will end its five-year-old quantitative easing (QE) program this October. Officials have been steadily winding down their monthly purchases of Treasury bonds and mortgage-backed securities since January, but this is the first time an end date has been presented.
- Yellen: Fed May Raise Rates by Spring 2015U.S. Federal Reserve Chair Janet Yellen made some waves in her news conference Wednesday when she said that interest rates may begin to rise about six months after the central bank concludes its bond-purchasing program. With the Fed expected to end quantitative easing in the fall, the rate hike would therefore begin in spring 2015.
- What Would the Camp Tax Overhaul Mean for Treasurers?Last week, U.S. Representative Dave Camp (R-MI) released the most detailed plan for overhauling the federal tax code since its last major restructuring in 1986. The plan broadens the taxable base and flattens out of the tax rate structure in an effort to down the marginal corporate rate.
- Former Fed Chair Bernanke to Keynote AFP Annual ConferenceFormer Federal Reserve Chairman Ben S. Bernanke will deliver the keynote address at the AFP Annual Conference in Washington D.C. November 2-5, the Association for Financial Professionals (AFP) announced today.
- Yellen: No Change on Forward Guidance, Labor Markets HurtingIn her first public appearance on Capitol Hill as confirmed head of the Federal Reserve Board, Chair Janet Yellen spoke before the House Financial Services Committee. Delivering the Fed’s Semiannual Monetary Policy Report to Congress, Yellen took questions from all committee members, lasting just short of six hours—an arrangement she agreed on beforehand.