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State treasurer says TLGP is functional equivalent of FDIC Insurance

On December 19, 2008, we wrote to State Treasurer Scott Meacham requesting an opinion from his office to clarify that FDIC-guaranteed deposits under the Temporary Liquidity Guarantee Program should be treated as "insured deposits" for purposes of exempting FDIC-insured public funds held at depository institutions from pledging requirements as set forth in the statute (62 O.S. § 511).

With the Temporary Liquidity Guarantee Program (TLGP) now in place, the OBA believed that an opinion from the Treasurer's office would help member banks explain to each public entity what it means to have an unlimited FDIC “guarantee” of non-interest bearing transaction accounts under the TLGP.

The Treasurer has issued an opinion that in determining the required amount of pledging for a public deposit, the amount "insured" includes the amount of any public deposit that's "guaranteed" by the FDIC's Temporary Liquidity Guarantee Program.

Click here to see a copy of the Treasurer's letter.


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