A news release posted yesterday entitled, "FDIC Approves Temporary Unlimited Deposit Insurance Coverage for Noninterest-Bearing Transaction Accounts," says, "The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a final rule to implement section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Section 343 provides temporary unlimited coverage for noninterest-bearing transaction accounts. This separate coverage will become effective on December 31, 2010, and will end on December 31, 2012."
It continues, "The final rule revises the FDIC's deposit insurance regulations to include noninterest-bearing transaction accounts as a new temporary deposit insurance account category. All funds held in such accounts are fully insured, without limit, and this coverage is separate from, and in addition to, the coverage provided to depositors for other accounts at an insured depository institution. Noninterest-bearing accounts, as defined in the Dodd-Frank Act, include only traditional, noninterest-bearing demand deposit (or checking) accounts that allow for an unlimited number of transfers and withdrawals at any time, whether held by a business, individual or other type of depositor."
The FDIC explains, "The new temporary provision for unlimited coverage of deposit insurance for noninterest-bearing transaction accounts is similar to the FDIC's Transaction Account Guarantee Program (TAGP) but differs significantly in the definition of 'noninterest-bearing transaction account.' The TAGP, which expires December 31, 2010, includes low-interest NOW (negotiable order of withdrawal) accounts and Interest on Lawyer Trust Accounts (IOLTAs). The final rule expressly states that NOW and IOLTA accounts are not covered under the Dodd-Frank Act definition of noninterest-bearing transaction accounts and do not qualify for temporary unlimited coverage."
In other news, a release entitled, "SunGard Expands SGN Short-Term Investment Portal for Cash Managers with Addition of BofA Funds" says, "SunGard has added BofAGlobal Capital Management's U.S. money market funds to its SunGard Global Network (SGN) Short-Term Cash Management portal. SGN is a global, multi-currency trading and connectivity solution that helps institutional cash investors, such as corporate treasurers, local authorities and asset managers, meet their short-term investment requirements."
Bob Ward, chief operating officer of SunGard's wealth management business, says, "Institutional investors come to SunGard for solutions that help them connect to their valued partners, like BofA Global Capital Management, in a fully-disclosed, transparent manner. We are pleased that the BofA Funds are now available via the SunGard Global Network."
