Cookies on our website

We use cookies on our website. To learn more about cookies, how we use them on our site and how to change your cookie settings please view our cookie policy.

Read more Close
Skip Ribbon Commands
Skip to main content
Sign In


FDIC’S debt guarantee program


07 November 2008

Does the program bar participating banks from issuing non-FDIC-guaranteed debt?  

On October 28, 2008, in light of what the US Federal Deposit Insurance Corporation (the "FDIC") described as an "unprecedented disruption in the [United States] credit markets, the FDIC issued an interim rule establishing its Temporary Liquidity Guaranty Program (the "TLG Program ").

The TLG Program consists of two components: the "Debt Guarantee Program," under which the FDIC will guarantee the payment of certain newly issued senior unsecured debt by eligible financial institutions and which is the subject of this note, and the "Transaction Account Guarantee Program," under which the FDIC will insure non-interest bearing transaction accounts at banks. The interim rule and subsequent FDIC guidance identify what entities may participate in, and what kind of debt may be guaranteed under, the Debt Guarantee Program. However, questions remain regarding the extent to which participation in the program will limit a participating entity's ability to issue other, non-guaranteed debt such as covered bonds or Federal Home Loan Bank secured loans.

Read the rest of the eBulletin here


Publications search

Related people

  • Add comment (optional)