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KEY FINANCIAL CRISIS DATES
for Banking Institutions
Perhaps now is the time for you to think out of the box. Key financial crisis dates arising in the very near term are provided below. Strategic considerations regarding capital raising, debt issuances, and deposit insurance coverage must be made by banking institutions within the next two weeks. Please keep these dates in mind. We can help you to raise capital.
1. FDIC Temporary Deposit Insurance Coverage - Valid through December 31, 2009.
· Temporarily increased deposit insurance coverage to $250,000 per depositor per institution.
2. FDIC Temporary Liquidity Guarantee Program ("TLGP") - November 12, 2008 Deadline for Opt-out or else Banks Pay the Respective Fees.
· FDIC Will Guarantee Certain Newly Issued Senior Unsecured Debt Issued by Participating Institutions on or after October 14, 2008 and before June 30, 2009.
· FDIC Is Providing Full Deposit Insurance Coverage for Non-Interest bearing Transaction Deposit Accounts Held at Participating FDIC-insured Institutions through December 31, 2009.
DEADLINE: Banks that do not intend to remain in one or both parts of TLGP must opt out of one or both parts of the TLGP by no later than November 12, 2008 or else pay the respective fees.
3. TARP (Treasury Asset Recovery) Capital Purchase Program - November 14, 2008 Is Application Filing Deadline.
· The U.S. Treasury may purchase qualifying capital of up to $250 billion in senior preferred shares issued by U.S. banking institutions. An amount of $250 billion has been declared toward this Program. The Treasury will make these purchases pursuant to standardized terms as described in the Program's term sheet.
DEADLINE: All applications must be submitted to the U.S. Treasury no later than November 14, 2008.
If you would like to discuss strategy and obtain specific guidance regarding the impact of these issues on your organization, please contact Keith Clark, Paul Adams, or Reginald Evans in our Camp Hill, Pennsylvania at 717-763-1121; Steve Lovejoy or Marty Ellis in our Towson, Maryland office at 410.8255223, oe e-mail us at mail@shumakerwilliams.com.
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