CLEVELAND, Dec. 5 /PRNewswire-FirstCall/ -- KeyCorp today announced that KeyCorp and KeyBank National Association (KeyBank) will participate in the Federal Deposit Insurance Corporation's (FDIC) Temporary Liquidity Guarantee Program, which has two components: the Transaction Account Guarantee Program, which provides 100 percent insurance coverage for domestic non-interest-bearing transaction accounts at eligible FDIC-insured depository institutions -- regardless of dollar amount -- through December 31, 2009; and the Debt Guarantee Program, by which the FDIC will guarantee the payment of newly issued senior unsecured debt until the earlier of its maturity or June 30, 2012.
Under the Transaction Account Guarantee Program, in addition to noninterest-bearing transaction accounts, negotiable order of withdrawal (NOW) accounts with interest rates of 0.50 percent or less, and certain other account types are also covered.
The Debt Guarantee Program provides an FDIC guarantee for newly issued senior unsecured debt of eligible financial institutions, such as KeyBank and KeyCorp. Funded through insurance premiums on newly issued debt, this debt guarantee program is intended to increase liquidity by assisting eligible institutions to replace existing debt that is scheduled to mature on or before June 30, 2009.
KeyBank plans to issue new debt under the FDIC Debt Guarantee Program, and has engaged KeyBanc Capital Markets Inc., Credit Suisse, Morgan Stanley, and UBS Investment Bank to assist in the prospective issuance.
Cleveland-based KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $101 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit https://www.key.com/.
