Temporary Liquidity Guarantee Program


Also found in: Acronyms.

Temporary Liquidity Guarantee Program

A rule adopted by the FDIC guaranteeing certain transaction accounts and unsecured loans that banks make to one another. The rule was implemented in 2008 to promote liquidity in interbank lending in the wake of the global financial crisis that started that year. It began to expire in 2010, though the Dodd-Frank Act made certain portions permanent.
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of the Temporary Liquidity Guarantee Program for six months, through
The accounts must be held at FDIC-insured institutions participating in the FDIC's Temporary Liquidity Guarantee Program. This too is scheduled to expire on Dec.
In response to bank-funding difficulties and depositor concerns, the FDIC last year instituted the Temporary Liquidity Guarantee Program (TLGP), which would, for a fee, insure financial institutions' non-interest-bearing transaction deposits and eligible senior unsecured debt.
Contents Deposit Insurance Resolution of Bank Failures Temporary Liquidity Guarantee Program Foreclosure Mitigation Homeowner Affordability and Stability Plan Conclusion Deposit Insurance
On October 14, 2008, the FDIC announced the creation of the Temporary Liquidity Guarantee Program (TLGP) to provide liquidity for interbank lending, which diminished significantly during the third quarter of 2008.
Under the Temporary Liquidity Guarantee Program, certain newly issued senior unsecured debt issued on or before June 30, 2009, would be fully protected in the event the issuing institution subsequently fails or its holding company files for bankruptcy.
The AAA rating on debt issued by NCB and its indirect thrift subsidiary NCB FSB under the Temporary Liquidity Guarantee Program remains intact.
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