Home > Regulation & Examinations >
Laws & Regulations > FDIC
Federal Register Citations
FDIC Federal Register Citations
Comments on the (TLGP) Temporary Liquidity Guaranty Program
I feel that we (Community Bank, Dunlap, IA) are a well run, well capitalized institution.
The Opt Out provision of this program leaves me wondering why the publishing of the bank listing when we Opt Out shouldnt be the other way around. Those that feel they need this additional coverage should disclose the fact. By listing well run, well capitalized institutions just because they choose to Opt Out might lead the public to think they are not a safe institution, which is not true.
As a user of correspondent banking services, Ive learned that should I need to borrow funds through them, that the cost may reflect tiered-pricing because of the TLGP. It seems that this isnt equitable to strong community banks.
While I dont anticipate the need to participate in the TLGP, it does seem to have a high cost. I feel like we are being forced to participate to protect our good name. By running a safe, secure and fundamentally strong financial institution, we are NOT putting the FDIC funds at risk.
I have thought that the TLGP is structured wrong for an insurance company. If all strong financial institutions Opt Out and only the weak participate, isnt there great risk of adverse selection?
T Randall, President
|Last Updated 11/12/2008||Regs@fdic.gov|