Amidst the fury of the late-2008 banking panic, Congress created a special bank bailout program called the Transaction Account Guarantee, or TAG for short. In brief, it extends a taxpayer guarantee on all deposits, without any limit — in contrast to FDIC insurance, which covers only the first $250,000 of any person’s deposits, and which banks cover (theoretically, at least) through fees.
The 2010 Dodd-Frank bill, which Obama claims was a broadside to the banks, extended TAG for two years.
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