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Business Briefing / Financial Crisis

GE begins to exit FDIC program

July 23, 2009|Times Wire Reports

General Electric Co. said that it has begun to exit a program that allows companies to issue debt backed by the federal government, a tool the conglomerate used to raise money during the credit crunch.

Fairfield, Conn.-based GE said the Federal Deposit Insurance Corp. had approved its application to begin phasing out participation in the Temporary Liquidity Guarantee Program, which enabled financial companies to issue debt with lower interest rates using the federal government's stable top credit rating.

The program was designed to make it easier for banks struggling during the financial crisis to find new sources of funds.

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