http://www.fdic.gov/news/news/financial/2008/fil08103.html
The Temporary Liquidity Guarantee Program (TLGP) is the FDIC's foray into backing corporate debt. It was announced about a month ago, but it was utilized extensively this week:
JP Morgan Chase: $6.5 billion in debt issued, AAA rated based on FDIC backing
Morgan Stanley: $5.75 billion in debt issued, AAA rated based on FDIC backing
Goldman Sachs: $5.0 billion in debt issued, AAA rated based on FDIC backing
In an earlier post this week, I mentioned that the Deposit Insurance Fund's reserve ratio dropped to 0.76% at the end of the 3rd quarter. So, (all else being equal) if the FDIC had to pay off the above referenced bonds, the fund would be cut in HALF.
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