Has the Temporary Liquidity Guarantee Program (TLGP) been extended?
The Debt Guarantee Program has been extended for senior unsecured debt issued after April 1, 2009 and before October 31, 2009 and maturing on or before December 31, 2012. Fees on debt issuance have increased (see below). Participating entities that are not insured depository institutions and did not issue debt before April 1, 2009 were required to apply for the ability to participate in the extension. On October 20, 2009, the FDIC established a limited, six-month emergency guarantee facility upon expiration of the Debt Guarantee Program. Under this emergency guarantee facility, certain participating entities can apply to the FDIC for permission to issue FDIC-guaranteed debt during the period starting October 31, 2009 through April 30, 2010. The fee for issuing debt under the emergency facility will be at least 300 basis points, which the FDIC reserves the right to increase on a case-by-case basis, depending upon the risks presented by the issuing entity. The Transaction Account Guarant
The Transaction Account Guarantee Program has been extended until December 31, 2010. Entities that had remained in the program and wished to continue their participation in the Transaction Account Guarantee Program during the second extension did not need to take any additional action. The rule authorizing the extension can be found here. Note that the basis for calculating the Transaction Account Guarantee Program assessments under the extension beginning July 1, 2010 was modified to one that uses average daily balances. In addition, the maximum interest rate on NOW accounts guaranteed under the program was lowered to 0.25 percent. There was no increase in rates associated with the second extension.
Related Questions
- Is senior unsecured debt issued under the FDICs Temporary Liquidity Guarantee Program (TLGP) or the NCUAs Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP) eligible to pledge for discount window or payment system risk collateral purposes?
- What is the FDICs plan for publicizing data related to the Temporary Liquidity Guarantee Program (TLGP)?
- Has the Temporary Liquidity Guarantee Program (TLGP) been extended?
