US bank regulator expands debt guarantee program

WASHINGTON (Reuters) - A top U.S. bank regulator voted Friday to expand its federal guarantee program to include banks' mandatory convertible debt.

The Federal Deposit Insurance Corp Friday voted to make a "very narrow targeted improvement" to its Temporary Liquidity Guarantee Program (TLGP) and separately voted to increase the fees it charges banks to insure deposits.

The FDIC established the voluntary guarantee program in October. It provides a government guarantee on certain senior unsecured debt and on banks' transaction deposit accounts. (Reporting by Karey Wutkowski and John Poirier, editing by Gerald E. McCormick)

Copyright 2009 Reuters, Click for