What is the Temporary Liquidity Guarantee (TLG) Program?
In November, 2008, the FDIC adopted the Temporary Liquidity Guarantee Program (TLG Program), which aims to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and by providing full coverage of noninterest-bearing deposit transaction accounts, regardless of dollar amount. This second part of the TLG Program is referred to as the Transaction Account Guarantee Program. Chevy Chase Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through June 30, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. For purposes of the Transaction Account Guarantee Program, the definition of a “noninterest-bearing transaction account” includes checking accounts earning no interest or an interest rate of 50 basis points (.50%) or less, and Interest on Lawyers Trust Accounts (IOLTA
Related Questions
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- What is the Temporary Liquidity Guarantee (TLG) Program?
