In addition, the FDIC began guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding companies under the Temporary Liquidity Guarantee Program (TLGP). 9 Since late April, some banks have issued debt outside of the TLGP, albeit with spreads of several percentage points higher than debt issued under the program.
This activity suggests that the TLGP is providing an important source of support to the funding needs of banks, thrifts, and their parent companies.