MoFo Report: FDIC Issues Interim Rule to Implement Temporary Liquidity Guarantee Program

On October 23, 2008, the Board of Directors of the Federal Deposit Insurance Corporation (the “FDIC”) announced that it had approved an interim rule under the FDIC’s systemic risk exception process (the “Interim Rule”) to govern its newly created Temporary Liquidity Guarantee Program (the “TLGP”).

The Interim Rule is effective immediately but comments will be taken for the 15-day period after publication in the Federal Register. The Interim Rule provides further detail on the operation of the TLGP, and this Client Alert expands upon and supersedes the discussion contained in our earlier Client Alert about the TLGP. Further, some of the provisions of the Interim Rule are different from those discussed by the FDIC in its informational briefings (the “Technical Briefings”) and it is important to review the rule carefully. We have noted certain of those changes in the Morrison & Foerster Client Alert.

To read the Morrison & Foerster client alert, click here.