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From: Reddy, Tom
Ladies and Gentlemen:
Chairperson Bair's statement of October 23 states that the FDIC's guarantee of new senior unsecured debt of participating institutions is backed by the full faith and credit of the United States. The interim rule with request for comments also dated October 23 makes no mention of full faith and credit.
Please clarify (i) whether the FDIC's guarantee represents an obligation for which the full faith and credit of the United States is pledged under Section 15(d) of the Federal Deposit Insurance Act (or under other relevant authorities) and (ii) if so, whether that full faith and credit guarantee extends to ancillary obligations under the guaranteed unsecured debt instruments, such as indemnification obligations and prepayment fee liabilities.
B I N G H A M
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