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Highlights:
The TLGP consists of two components:
- a temporary guarantee of newly issued senior unsecured debt ("debt guarantee program"), and
- a temporary and unlimited guarantee of the coverage of funds in non-interest bearing transaction accounts at FDIC-insured institutions ("transaction account guarantee program").
Generally, and as defined in the interim rule, the following entities are
eligible to participate in the TLGP:
- any FDIC-insured depository institution;
- any U.S. bank holding company, including financial holding companies; and
- certain U.S. savings and loan holding companies.
The interim rule includes a provision for certain otherwise ineligible holding
companies or affiliates that issue debt for the benefit of an insured
institution or eligible holding company to apply for inclusion in the program
on a case-by-case basis.
All eligible entities will be covered under the TLGP without cost to the
entity for the first 30 days of the program. On or before November 12,
2008, eligible entities must inform the FDIC if they will opt out of the debt
guarantee program or the transaction account guarantee program, or both.
An eligible entity's decision to opt out of either component of the TLGP will
be made available to the public. The FDIC will maintain and post on its
Web site (www.fdic.gov) a list of those entities that have opted out of either
or both components of the TLGP.
Beginning on November 13, 2008, unless an eligible entity has chosen to
opt out of a component of the TLGP, it will be assessed fees for continued
coverage under that component.
Distribution:
All FDIC-insured institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
Attachment:
Temporary Liquidity Guarantee Program - Interim Rule - PDF (PDF Help)
Contact:
FDIC Call Center (toll free)
1-877-ASKFDIC (1-877-275-3342)
TDD: 800-925-4618
Printable Format:
FIL-110-2008 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs)
may be accessed from the FDIC's Web
site at
www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please
visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial
institution letters may be obtained
through the FDIC's Public Information
Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (1-877-275-3342
or 703-562-2200).
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