CUNA produced and is running ads on Washington, D.C. radio and in Capitol Hill publications that are attacking banks' support for legislation providing unlimited deposit insurance coverage for deposits in noninterest bearing accounts. The ads were placed as the possibility of a procedural vote on the Transaction Account Guarantee (TAG) program looms in the Senate. In the print ad, running in Politico on Monday and Tuesday, CUNA urges legislators not to give bankers another government handout by approving the TAG extension.
"TAG has already cost the FDIC almost $2.5 Billion and provides a guaranteed oasis to the Banks of $1.4 Trillion. Don't expose taxpayers to potentially $1.4 Trillion in losses while the Banks are making Billions again. Don't give the Banks another TARP hand out," reads the CUNA print ad.
S. 3637, the deposit insurance legislation, would extend unlimited deposit insurance coverage granted during the financial crisis for noninterest bearing transaction accounts. Coverage is set to revert back to $250,000 at year's end without congressional action. The bill is strongly favored by major bank trade associations.
The environment on Capitol Hill continues to be volatile as the very partisan fight over automatic tax hikes and spending cuts drags on and congressional calendars are subject to continuous change. Within that very fluid legislative environment, CUNA and credit unions continue to work to find the best strategy to win a vote on an MBL cap increase.
"Our best chance for MBL passage this year is if it is part of the right package," CUNA Senior Vice President of Legislative Affairs Ryan Donovan said Friday. "And for that to happen credit unions must come out full force to block a vote that would clear a TAG extension for a vote without MBL language." In the radio ad running on Washington news radio station WTOP, CUNA calls on citizens to "tell Congress to get in the game and stand up to banks" by backing U.S. House (
H.R. 1418) and Senate (
S. 2231) MBL bills.
A video version of the radio ad was produced to allow distribution through Facebook, Twitter and other social media outlets. If you would like a copy of any of the TAG opposition resources, contact LSCU VP, Marketing and Communications
Mike Bridges at 866.231.0545 ext. 1022.