Update: FDIC Backed Debt

One of the more popular government programs of late is the TLGP (please check the 11/28/08 post for more details). The borrowing burden for banking companies has been lessened by this program since the debt is issued with a AAA rating. The interest expense on these bonds is significantly lower because, in essence, the tax payer will back issuer.

The graph below details the amount of issuance under the TLGP as of last Friday. The total is $46.725 billion.