CSBS Calls for Extension of Temporary Liquidity Guarantee Program

by 22 Jun 2009

CSBS Calls for Extension of Temporary Liquidity Guarantee Program

 

WASHINGTON, D.C. -- The Conference of State Bank Supervisors (CSBS) today indicated the organization's public support for the extension of the Temporary Liquidity Guarantee Program (TLGP), specifically the portion which provides coverage for non-interest bearing transaction accounts.

 

In a letter to FDIC Chairman Sheila C. Bair, Treasury Secretary Timothy Geithner and Federal Reserve Board Chairman Ben Bernanke, CSBS President and CEO Neil Milner commented that this program has done more to stabilize the banking industry and enhance public confidence than any other program.

 

"This has been particularly important for community and regional banks, which may not have as many capital and liquidity options as the nation’s largest institutions and have not been deemed systemically important to warrant extraordinary public assistance," Milner said.

 

"While the financial system appears to be stabilizing, we believe markets are still tenuous and institutions are still vulnerable, making extension of the TLGP necessary as the economic slowdown continues to move through the economy. This program is critical to maintaining public confidence during this period of continued uncertainty," Milner added.

 

The program was launched in November 2008, following a determination of systemic risk by the Secretary of the Treasury based on a recommendation from the FDIC Board of Directors and the Board of Governors of the Federal Reserve System.

 

CSBS encouraged Treasury and the agencies to act on the extension well before the current expiration date of December 21, 2009.

 

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The Conference of State Bank Supervisors (CSBS) is the nationwide organization for state banking, representing the bank regulators of the 50 states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands, and approximately 6,000 state-chartered financial institutions. CSBS also is responsible for improving the quality of state bank supervision by providing department performance evaluation and accreditation programs and supervisory education/training programs for state banking department personnel.

 

Information Contact: Catherine Woody, Director of Public Relations for Policy, cwoody@csbs.org  or (202) 728-5733.

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