The Federal Deposit Insurance Corp. (FDIC) is opening up liquidity for U.S. banks with its Temporary Liquidity Guarantee Program. And banks will be taking heavy advantage, according to one market watcher.

Barclays Capital said Tuesday that banks participating in the program will be able to issue between $350 billion and $450 billion dollars in bonds by the end of June.

A separate report released Tuesday said that FDIC backed-bonds are doing well in secondary-market trading, allowing banks to sell them for much-needed capital.

The FDIC’s debt guarantee program guarantees senior unsecured bank debt that is issued through June 30, 2009, and that has a maturity of up to three years.


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