The FDIC proposal, presented to the Senate Banking Committee onThursday, would entail the government using some of the $700billion of funds authorized under the Emergency EconomicStabilization Act of 2008 to directly support home ownerswith guaranteed home mortgages. While the government has introducedseveral measures to assist homeowners directly, this is the firstunder the act passed earlier this month. Indeed, one criticism ofthe act was that it provided little relief to home owners.

AIG is also looking like it will need additional funding,according to statements made by the newly appointed CEO EdwardLiddy. The insurance agency has used $90.3 billion of the fundsmade available to it by the government; it will need another $123billion, he says, according to news accounts. In related news, AIGwill be selling its life insurance subsidiary--along with its planeleasing and consumer finance operations--to shore up its corebusiness.

Also, the Treasury Department is reportedly gearing up torelease the second $125-billiontranche to regional banks. Nine major institutions received thefirst $125 billion. Applications have been rolling into Treasuryfrom regional banks vying for a piece of the program as well.According to one news source, Treasury will be announcing dealsbetween $50 billion and $125 billion in the next few days.