JPMorgan, Marshall & Isley to join FDIC programs

NEW YORK - JPMorgan Chase and Co. and Marshall & Isley Corp. said Friday they will participate in the two components of the Federal Deposit Insurance Corp.'s temporary liquidity guarantee program.

JPMorgan, now the nation's largest bank by market capitalization, said it and its eligible depository institutions will participate in the FDIC's transaction account guarantee program and its debt guarantee program.

JPMorgan, which took over investment bank Bear Stearns in March, also is now the parent of Seattle-based Washington Mutual, or WaMu, in addition to its namesake brands.

Milwaukee-based Marshall & Isley, which also operates Southwest Bank, said it and its eligible affiliates will also take part in those two FDIC programs.

The transaction account guarantee program provides a full guarantee on all non-interest bearing transaction accounts, like personal and business checking, held by any depositor through Dec. 31, 2009. The debt guarantee program guarantees senior unsecured debt of banks, thrifts, and certain holding companies in the event of payment default.

Friday was the cutoff date for banks to opt into the programs.

JPMorgan shares rose $2.27, or 7 percent, to close at $33.35. Marshall & Illsley shares ended up 54 cents, or 4 percent, at $13.68.

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