U.S. Bancorp (USB) to Opt-Out of FDIC's 6-Month Extension of Transaction Account Guarantee Program
U.S. Bancorp (NYSE: USB) announced today that its banking subsidiaries, U.S. Bank National Association and U.S. Bank National Association ND, will opt-out of the six-month extension of the Transaction Account Guarantee Program. The current program, which is in effect through December 31, 2009, provides full insurance coverage from the FDIC on noninterest-bearing transactional accounts with balances greater than $250,000. Effective January 1, 2010, FDIC insurance will be limited to $250,000 per transactional account.
The decision to opt-out of the extension of the TAGP is a reflection of U.S. Bancorp's strong capital and liquidity position. U.S. Bancorp previously announced the redemption of the $6.6 billion of preferred stock issued under the TARP and the repurchase of the 10-year warrant issued to the U.S. Treasury in conjunction with the TARP program, effectively concluding the company's participation in TARP.
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