What authority does the FDIC have to provide the guarantee?
A. The FDIC is acting pursuant to its “systemic risk” authority that allows it to take steps without regard to the requirement to impose a least-cost resolution of a failed bank. There is nothing in the statute that addresses the FDIC’s authority to guarantee debt. (3/26) If you have any questions concerning this program, please contact: Mark Tenhundfeld ((202) 663-5042; mtenhund@aba.com) or Rob Strand ((202) 663-5350; rstrand@aba.com).
Related Questions
- What is the difference between basic FDIC deposit insurance coverage and the unlimited coverage available in the Transaction Account Guarantee Program?
- What risk weight is assigned to assets with an FDIC guarantee or subject to an FDIC assistance agreement?
- What authority does the FDIC have to provide the guarantee?
