Federal Deposit Insurance Corporation Temporary Liquidity Guarantee Program
On October 23, 2008, the Federal Deposit Insurance Corporation issued an Interim Rule for implementing the Temporary Liquidity Guarantee Program, which is intended to restore inter-bank lending, encourage liquidity and strengthen confidence in the banking system. The program has two components. First, the FDIC will guarantee, until the earlier of maturity or June 30, 2012, new senior unsecured debt issued on or before June 30, 2009 by eligible banks, thrifts, and their holding companies. Second, the FDIC will provide unlimited insurance coverage until December 31, 2009, for noninterest-bearing deposit accounts. The Interim Rule became effective on October 23, 2008, but the FDIC will accept comments over the next fifteen days.