Issuing FDIC-Guaranteed Debt under the TLGP

November 25, 2008

On Friday, November 21, 2008, the Federal Deposit Insurance Corporation issued its Final Rule regarding its Temporary Liquidity Guarantee Program. The TLGP includes the Debt Guarantee Program under which the FDIC is guaranteeing the unsecured senior debt of eligible entities.

The first offering of debt guaranteed under the program was launched yesterday and already a number of other offerings are underway. It has been estimated that approximately $300 billion of debt may be issued under the TLGP.

Yesterday, the SEC staff also helpfully clarified in no-action guidance that offerings of TLGP-guaranteed debt maturing on or before June 30, 2012 do not need to be registered under the Securities Act, thereby likely further facilitating offerings under the program.

The attached checklist outlines the key provisions of the Debt Guarantee Program and details the process for, and other important considerations relating to, issuing debt under the TLGP.