The Wall Street Journal writes "Extension of FDIC Program Gains Key Backer but Hurdles Loom". It says, "The top Democrat in the U.S. Senate is backing an extension to an FDIC program that provides unlimited guarantees for $1.4 trillion in bank deposits. Banks, particularly small ones, have been scrambling to get lawmakers to continue a Federal Deposit Insurance Corp. program that provides unlimited guarantees for certain zero-interest deposits used by companies for payroll and other routine transactions. The FDIC normally provides $250,000 in insurance. The program is set to expire at the end of the year. Many small banks, worrying the money is likely to flow out of their institutions to large banks or big money-market mutual funds, have been pressing Capitol Hill to extend the program. Larger banks, many of which offer money-market funds as well as traditional deposit accounts, haven't taken a public position on the issue. But legislation introduced Monday by Senate Majority Leader Harry Reid (D., Nev.) would extend the FDIC's Transaction Account Guarantee program for two years. The bill is expected to be debated on the Senate floor over the next week, an aide said, declining to comment further." See the original mention in The Hill "Reid introduces bill extending federal guarantees for bank accounts" and the full text of the bill here.
