On October 14, 2008, the Federal Deposit Insurance Corporation (FDIC) announced the creation of a new program, the Temporary Liquidity Guarantee Program (TLGP), designed, together with Treasury’s Capital Purchase Program and the Federal Reserve’s enhanced Commercial Paper Funding Facility, to unfreeze credit markets. Through the TLGP, the FDIC provides insurance to previously uninsured amounts in non-interest bearing transaction deposit accounts and guarantees certain newly-issued senior unsecured debt. Below, we discuss the debt guarantee program.

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