FDIC prepares to wind down debt-guarantee program for banks

The banking industry is about to face a test of how well it will fare without the Federal Deposit Insurance Corp.'s debt-guarantee program. The FDIC said it is weighing whether to continue the program for an additional six months or allow it to expire as planned Oct. 31. "As domestic credit and liquidity markets appear to be normalizing and the number of entities utilizing the debt-guarantee program has decreased, now is an important time to make clear our intent to end the program," said FDIC Chairwoman Sheila Bair.

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