Participation in the current program will continue through December 31, 2009
BNY Mellon has announced that it intends to opt out of the six-month extension of the Transaction Account Guarantee Program (TAGP), which guarantees full insurance coverage from the FDIC on non interest-bearing transactional accounts greater than $250,000.
The participation in the current program will continue through December 31, 2009.
Thomas Gibbons, chief financial officer of BNY Mellon, said: This decision reflects our strong financial position. We have repaid our TARP funding and ended the third quarter of 2009 with capital ratios, including tier 1, tier 1 common and tangible common equity, stronger than the same period a year ago.
The Federal Deposit Insurance Corporation (FDIC) is a US government corporation created by the Glass-Steagall Act of 1933 which provides deposit insurance, guarantees the safety of deposits in member banks.