Liquidity Programs An interim rule by the Federal Deposit Insurance Corp. detailing the mechanics of the agency's temporary guarantees of bank debt and no-interest checking deposits. The rule outlines the FDIC's authority for administering the program, including that the agency can do on-site reviews of participating banks and levy a special premium on the industry if fees paid by participants are insufficient to fund the program.Under the plan, institutions wanting to opt out must do so by Dec. 5. Banks can have their unsecured debt guaranteed until June 30, 2012, if it was issued between Oct. 14 of this year and next June 30, and must pay a 75-basis-point premium. Banks can have no-interest accounts covered until the end of 2009 for a 10-basis-point surcharge on deposit insurance above the standard coverage limit.
Published in the Federal Register on Oct. 29. Comments due today.