Debt Guarantee Program Extended, Again

WASHINGTON (CN) – Halloween is the new expiration date for the Federal Deposit Insurance Corporation’s Debt Guarantee Program for insured banks participating in the Temporary Liquidity Guarantee Program. The Debt Guarantee Program allows participating institutions to issue debt guaranteed by the FDIC without maintaining normal capital reserves to cover defaults.     The program had been set to expire on June 30, but the FDIC chose to extend the debt guarantees after the Federal Reserve and the Treasury Department extended their interconnected programs to promote liquidity in the credit markets.     The surcharge on all debt issued under the program after April 1 will continue, to replenish the FDIC Insurance Fund’s money that has gone out to failing banks.