☰

Empresas y finanzas

Bank regulators may extend crisis-era guarantee


    WASHINGTON (Reuters) - U.S. bank regulators may extend a guarantee program set up at the peak of the financial crisis, fearing that ending the program could spark liquidity failures at small banks.

    Sheila Bair, chairman of the Federal Deposit Insurance Corp, said on Thursday that the agency is considering extending the Transaction Account Guarantee program, known as TAG.

    The program, set to expire on June 30, provides federal backing for accounts that businesses typically use to meet payroll and pay vendors.

    It was put in place in October 2008 when businesses were pulling their money out of smaller banks and parking their funds in larger institutions they perceived to be safer.

    "A key question is are we far enough out of the woods now. Or if we lift it, are we going to see that pick up again and trigger liquidity failures," Bair said at a conference for the American Bankers Association.

    Bair said the FDIC will likely act in the next 30 days in deciding whether to extend the program.

    (Reporting by Karey Wutkowski; Editing by Steve Orlofsky)