Update at a Glance

December 4, 2008

Important Update On Changes In FDIC Coverage

Transaction Account Guarantee Program

On October 14, 2008, the FDIC announced the Temporary Liquidity Guarantee Program (TLGP) to strengthen confidence and encourage liquidity in the banking system. The TLGP includes a Transaction Account Guarantee Program (TAGP). Under the TAGP, through December 31, 2009, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the TAGP is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. (On October 3, 2008, the basic deposit insurance coverage increased from $100,000 to $250,000 per depositor through December 31, 2009.)

The FDIC-insured subsidiaries of The Bank of New York Mellon Corporation are participating in the FDIC's Transaction Account Guarantee Program (TAGP).

A "non-interest bearing transaction account" is defined as an account to which interest is neither accrued nor paid and on which the bank does not reserve the right to require advance notice of intended withdrawal. The definition encompasses traditional Demand Deposit Accounts that allow an unlimited number of withdrawals at any time. The definition for TAGP purposes includes certain NOW accounts with lower interest rates, as well as Interest on Lawyers Trust Accounts. It does not include savings accounts, Money Market Deposit Accounts (MMDAs), time deposits (CDs), or certain NOW accounts with higher interest rates. Note that the basic deposit insurance rules will continue to apply to accounts excluded from TAGP.

Under the TAGP rules, balances swept from a non-interest bearing transaction account to a non-interest bearing savings account will be considered non-interest bearing transaction account balances and will be eligible for the unlimited coverage under the TAGP. However, balances swept out of non-interest bearing transaction accounts to interest bearing deposit products or overnight investments (e.g., the Late Night Investment product) will not be eligible for the TAGP.

Please contact your relationship manager or refer to the FDIC websites below for a more thorough discussion of deposit insurance and the TLGP: http://www.fdic.gov/news/news/press/2008/pr08100.html or http://www.fdic.gov/regulations/resources/TLGP/index.html

Additional information about the impacts of this change has been enclosed with statements mailed to Bank of New York Mellon Treasury Services clients in December.