2012 Illinois Bankers Association Shoring-Up Your Repurchase Agreements
On December 6, 2012, Karol Sparks, a partner in the Financial Institutions Group of Barack Ferrazzano, participated in the Illinois Banker Association’s (IBA) Shoring Up Your Repurchasing Agreements to Meet the End of TAG. During the hour session Karol presented a general overview educating viewers about the benefits of repurchasing agreements, as well as possible problems and solutions. When properly executed repurchasing agreements will be an effective way for banks, especially community banks, to keep customers after the FDIC Transaction Account Guarantee (TAG) program created by Dodd-Frank expires at the end of the year. The expiration of the TAG program will leave your business and government customers’ uninsured for their noninterest-bearing demand deposit accounts above $250,000. The answer to protecting and retaining customers is to shift their uninsured amounts to repurchasing agreements.