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®: CRE Regulatory Action of the Week
FDIC Publishes Final Troubled Institution Rules
On June 3, 2009, the U.S. Federal Deposit Insurance Corporation published two final rules dealing with financial problems at financial institutions.
The first rules restate without change the interim rule published in the Federal Register by the FDIC on March 23, 2009. They amend the Temporary Liquidity Guarantee Program by providing a limited extension of the Debt Guarantee Program for insured depository institutions participating in the DGP. The extended DGP also applies to other participating entities; however, other participating entities that did not issue FDIC-guaranteed debt before April 1, 2009 are required to submit an application to and obtain approval from the FDIC to participate in the extended DGP. The final rule imposes surcharges on certain debt issued on or after April 1, 2009. Any surcharge collected will be deposited into the Deposit Insurance Fund. The final rule also establishes an application process whereby entities participating in the extended DGP may apply to issue non-FDIC-guaranteed debt during the extension period.
Click here to read these rules
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