Financial Institution Letter
FIL-110-2008
October 23, 2008Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Interim Rule
Summary: Following a systemic risk determination pursuant to section 141 of the Federal Deposit
Insurance Corporation Improvement Act of 1991, in an effort to avoid or mitigate serious adverse effects on
economic conditions and financial stability, the FDIC has issued the attached interim rule establishing the
Temporary Liquidity Guarantee Program (TLGP). The FDIC is soliciting comment on all aspects of this
interim rule. Comments are due 15 days after the interim rule’s publication in the Federal Register, which is
expected soon. Coverage under the TLGP was established by the FDIC as of October 14, 2008.
Distribution:
All FDIC-insured institutions Highlights:
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
The TLGP consists of two components:
• a temporary guarantee of newly issued senior unsecured debt
(“debt guarantee program”), and
Attachment:
Temporary Liquidity Guarantee
Program − Interim Rule
• a temporary and unlimited guarantee of the coverage of funds in
non-interest bearing transaction accounts at FDIC-insured
institutions (“transaction account guarantee program”).
Contact:
FDIC Call Center (toll free)
1-877-ASKFDIC (1-877-275-3342)
TDD: 800-925-4618
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).
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.
FIL-110-2008
October 23, 2008Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
TEMPORARY LIQUIDITY GUARANTEE PROGRAM
Interim Rule
Summary: Following a systemic risk determination pursuant to section 141 of the Federal Deposit
Insurance Corporation Improvement Act of 1991, in an effort to avoid or mitigate serious adverse effects on
economic conditions and financial stability, the FDIC has issued the attached interim rule establishing the
Temporary Liquidity Guarantee Program (TLGP). The FDIC is soliciting comment on all aspects of this
interim rule. Comments are due 15 days after the interim rule’s publication in the Federal Register, which is
expected soon. Coverage under the TLGP was established by the FDIC as of October 14, 2008.
Distribution:
All FDIC-insured institutions Highlights:
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Compliance Officer
The TLGP consists of two components:
• a temporary guarantee of newly issued senior unsecured debt
(“debt guarantee program”), and
Attachment:
Temporary Liquidity Guarantee
Program − Interim Rule
• a temporary and unlimited guarantee of the coverage of funds in
non-interest bearing transaction accounts at FDIC-insured
institutions (“transaction account guarantee program”).
Contact:
FDIC Call Center (toll free)
1-877-ASKFDIC (1-877-275-3342)
TDD: 800-925-4618
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).
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.