ABSTRACT

CARES Act (P.L. 116-136) Section 4008: FDIC Bank Debt Guarantee Authority [April 2, 2020]   [open pdf - 605KB]

From the Document: "Section 4008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES; P.L. 116-136) authorizes the Federal Deposit Insurance Corporation (FDIC) to guarantee certain deposits that are not eligible for regular FDIC deposit insurance due to the existing $250,000 per account insurance limit. This broadens FDIC authority from Section 1105 of P.L. 111-203 (Dodd-Frank Act) to establish a program that would guarantee bank debt in the event of a financial liquidity crisis. Section 4008 also preemptively grants the requisite congressional approval for any such program needed to respond to the COVID-19 [coronavirus disease 2019] outbreak, provided the FDIC guarantee terminates no later than December 31, 2020. This Insight provides an overview of FDIC guarantees and Section 4008."

Report Number:
CRS Insight, IN11307
Author:
Publisher:
Date:
2020-04-02
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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