It passed and there is a vote to finalize the bill on Thursday. What does that mean? If it passes Thursday - where does it go from there?

What passed was a motion to discuss the bill. It may or may not pass the Senate on Thursday. If it does pass the Senate, it still has to go to the House, where most sources say it will see stronger opposition.

Just saw this around 1 p.m.:

(Reuters) - A bill to extend a financial crisis-era deposit insurance program on Thursday failed to garner the needed support to overcome a crucial procedural vote in the Senate.

The Transaction Account Guarantee program, which insures checking account deposits above the $250,000 normally covered by the Federal Deposit Insurance Corp, is set to expire at the end of the year.

The bill, sponsored by Majority Leader Harry Reid, would have given the program two more years. Bank lobbyists said letting the program end would lead companies to pull funds from bank accounts and invest elsewhere.

Fifty senators voted to waive a procedural challenge to the bill raised by Republican members on Thursday, fewer than the 60 votes needed to move forward with the legislation.

ABA Statement on FDIC TAG Program Voteby Frank Keating, ABA president and CEOPage Content
​“We’re disappointed that the Senate failed to vote on a temporary extension of the FDIC’s Transaction Account Guarantee program. The TAG program has been fully funded by the banking industry at no taxpayer expense and millions of small businesses and municipal depositors would have valued its continuation during this period of economic recovery.”

“Although we’re disappointed with today’s outcome, America’s banks – with $1.6 trillion in capital – are prepared. Banks already have been communicating about the possible expiration of TAG and will work with their business customers to demonstrate the safety of their deposits.”

From ABA

Anyone know how long we need to keep the expiration notice up on our website and branches after Jan 1st?

I was thinking until the end of 1st quarter since that is when the call report instruction pertaining to these accounts would be revised.

Thought??

FDIC guidance is to remove the current notice at expiration of the Program on December 31. There is no requirement to have any notice in the branch and/or website (other than the required FDIC Insurance signage) after December 31.

Correct. The "suggested" notice that the FDIC "encourages" you to send is for delivery to the affected accounts, not as a lobby or website thing.

Senate Kills TAG Extension Legislation per ABA news alert.

WE added that story to our "Late-Breaking News" in BankersOnline's Top Stories early this afternoon.

www.bankersonline.com/topstory/topstory.html

Anyone think that it will get added to last minute fiscal cliff legislation?

I would hope that no one would be crazy enough to allow it.

Now that TAG has officially expired, I was wondering how many banks are getting questions from their customers about possible expanded FDIC insurance coverage products/what other banks are doing?

Also, have any banks experienced customers taking their deposits and moving to other banks that have products that can handle FDIC insurance needs/or are TBTF?