FDIC Now Backing General Electric Debt?

How far do we stretch this. GE announced that it will begin tapping a facility known as the Temporary Liquidity Guarantee Facility which is extended via the FDIC.

I hope there was a mistake I read in the WSJ article on this one. I wasn't even aware that the FDIC had this facility nor can I understand how they could have such a facility. If anyone out there can correct the article or help me out on this one I would appreciate it.

As far as I know, the FDIC is a GSE that insures bank deposits. It gets its funds from insurance premiums paid by the banks that are part of the program and enjoys a line of credit from the Treasury. To the best of my knowledge it isn't a part of the government and does not have the resources to support GE or anyone else of size.

That aside, why in the world is a triple A company like GE lining up at the government trough and why would anyone in the government tolerate it. This slope is not only slippery but we're sliding down it uncomfortably fast.

Tom Lindmark