Emergency Clearance Request Letter

FDlct

Federal Depositlnsurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990

Legal Division

November 26, 2008

Nicholas A. Fraser
Desk Officer
Offce of Information and Regulatory Affairs
Offce of

Management and Budget

Washington, D.C. 20530
Dear Mr. Fraser:

The Federal Deposit Insurance Corporation (FDIC) hereby requests approval by
December 2, 2008, for revisions to its Temporary Liquidity Guarantee Program collection of
Management and Budget's (OMB)
information (OMB No. 3064-0166) pursuant to the Offce of
Paperwork Reduction Act (PRA) emergency processing procedures at 5 CFR § 1320.13.
this request is
needed prior to the time period established under 5 C.F.R. § 1320.10; (2) this collection of
information is essential to the mission of
the FDIC; and (3) the FDIC cannot reasonably comply
with normal clearance procedures because an unanticipated event has occurred and the use of
normal clearance procedures is reasonably likely to prevent or disrupt the collection of
information.
The FDIC has determined that (1) the collection of

information within the scope of

As described more fully in the attached Supporting Statement, on October 13,2008, in response
to the unprecedented disruption in credit markets and the resultant effects on the abilities of
insured depository institutions to fund themselves and to intermediate credit, the Secretary of

the

Treasury (after consultation with the President) made a determination of systemic risk following
the FDIC Board, along with the written
recommendation of
the Federal Reserve Board, in accordance with section 13(c)(4)(G) of
the
Federal Deposit Insurance Act (FDI Act). Pursuant to the systemic risk determination, the
FDIC Board established the Temporary Liquidity Guarantee (TLG) Program and approved an
interim rule on October 23,2008, which contains information collection requirements subject to
receipt ofthe written recommendation of

the PRA. On November 21, 2008, the FDIC Board approved a final rule to implement the TLG
Program (73 FR 72244, November 27,2008). The TLG Program is comprised of
two

components, a Debt Guarantee Program and a Transaction Account Guarantee Program.
the program, the FDIC will guarantee all newly-issued
senior unsecured debt up to prescribed limits issued by participating entities on or after October

Under the Debt Guarantee Component of

14,2008, through and including June 30, 2009. As indicated in the interim and final rules, the

maximum amount of outstanding debt guaranteed for each participating entity at any time is
limited to 125 percent of
the participating entity's senior unsecured debt that was
the par value of
outstanding as of
the close of
business on September 30, 2008, with exceptions to the guarantee
limit only at the discretion of
the FDIC. The final rule, however, establishes a formal
mechanism for applications for exceptions to the guarantee limit, requiring that newly eligible or

participating entities wishing to establish or increase their debt guarantee limits submit a written
letter application. In addition, the final rule requires a written letter application from affliates of
an inured depository institution wishing to participate in the debt guarantee program and from
non-participating suriving entities in a merger transaction wishing to opt in to either the debt
guarantee or transaction account guarantee programs. Each letter application must include the
the request, a summar of
the applicant's strategic operating plan, and a description of
details of
the proposed use of

the debt proceeds. The information collected in the letter applications is

required by the FDIC to evaluate whether to approve an applicant's request to paricipate in the
programs or for an increase in its debt guarantee limit and to determine what conditions, if any,
should be attached to a favorable disposition of the request.
The Transaction Account Guarantee Program remains in effect through December 31,2009.
Accordingly, the FDIC plans to follow this emergency request with a request for approval of
these revisions that will be processed under OMB' s normal clearance procedures in accordance
with the provisions of 5 C.F.R. § 1320.10.
Sincerely,

_.~~
Robert E. Feldman
Executive Secretary

Attachment

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