The CARES Act revises a key provision in the Dodd-Frank Act to allow the FDIC to reopen a sweeping Temporary Liquidity Guarantee Program (TLGP) offered in the midst of the 2008 great financial crisis for uninsured deposits and parent-company debt. This TLGP lasts for the duration of the COVID crisis, extending this protection for deposits also to credit unions. Putting it into effect will require FDIC action, with the terms and conditions of its new rule determining the scope and construct of holding-company support.
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