GE ready to exit the Temporary Liquidity Guarantee Program

Earlier this morning, General Electric (GE) announced that the Federal Deposit Insurance Corp. (FDIC) approved an application for the conglomerate to exit the Temporary Liquidity Guarantee Program (TLGP). Thanks to this decision, GE Capital will no longer issue government-guaranteed short-term debt. The firm will now issue non-guaranteed long-term debt with maturities of 18 months to three years.

GE's Treasurer Kathryn Cassidy believes the move is "a positive step in returning the broader capital markets to normal functioning and is in line with GE Capital's 2009 and 2010 debt issuance and funding cost plans." According to Cassidy, this move will allow GE to respond to strong investor demand for longer-term debt.