A good source reports this to me, in his own words which I have shamelessly appropriated:
Here’s the skinny, a part of TARP was the so called TAG program. What it did was remove the cap on insured deposits without limit as long as there was no interest being paid on the account. Now tell me who is paying interest bearing checking anymore? So in other words, TAG now makes the federal taxpayers liable for another 1.4 trillion dollars in deposits. Like TARP, it was supposed to be a temporary measure to calm bank depositors, but it was extended in Dodd Frank and now the bankers (who love it of course) are racing to get it extended. The scary part is that a number of Republicans may help the Dems jam it through the Senate next week on a party line vote without amendment. Pretty ironic that Reid and Schumer think taxes need to go up on people making 250k per year, but they are willing to lift the insurance cap on deposits of a similar size for their buddies in the banking industry and dump the liability of the Treasury. It stinks.
See this WSJ editorial from August. It was assumed this thing was dead but it looks very live according to sources in the GOP Senate leadership and Banking Committee. BTW, worth noting as usual Shelby, who opposed TARP and is Ranking on Banking is opposing it.
Reid may file cloture and move to a vote as early next week. Republicans, as if is possible, should be ashamed to let this happen and bless it in the midst of the beating they are taking on the Cliff issues and all their moaning about spending and federal liabilities.