Currently 7,107 IDIs participate in the TAG program, of which approximately 3,744, or 52.7 percent are small entities. Within the universe of small institutions, 1,072, or 28.6 percent did not have TAG eligible deposits as of the March 2009 Report of Condition and Income for banks and the Thrift Financial Report for thrifts (collectively, “March 2009 Call Reports”); thus, they were not required to pay the 10 basis point fee currently assessed for participation in the TAG program. Assuming these IDIs do not change circumstances and do not opt out as provided in Alternative B, there would be no impact on this group if the proposed fee increase contained in Alternative B were adopted. As to the remaining 2,672 small entities that had TAG eligible deposits as of the March 2009 Call Reports, they would have the opportunity to opt out of the extended TAG program if Alternative B were adopted. However, assuming these 2,672 small entities remain in the TAG program if Alternative B is adopted, the FDIC asserts that Alternative B described in the proposed rulemaking could have some impact on a substantial number of them that remain participants in the TAG program during the extension period.As this one TLGP subcomponent is merely one of the tens if not hundreds of assorted financial backstop programs (main ones listed here), look for many such comparable notices coming out of the FDIC over the next month, as the agency realizes that the EOY 2009 maturity for the bulk of them is a joke, and the financial system will need many years with full government backing before it can do anything on its own.
In the meantime, GS stock will hit $1,000 as the employees of all competitors leave, unwilling to wait until 2020 when they get their first chance of collecting even a semi-respectable bonus.
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