Goldman Sachs on Tuesday became the first US bank to issue debt backed by the Federal Deposit Insurance Corp under one of several government plans designed to bolster financial companies and stimulate lending.

Fellow US banks were quick to follow Goldman in what could be a $300bn market. JPMorgan and Morgan Stanley pitched similar deals to investors while other banks and financial entities such as GE Capital, the financing arm of General Electric, are expected to participate in the new asset class. A flourishing market for such debt already exists in Europe after deals from UK banks such as Lloyds TSB, Royal Bank of Scotland and Barclays.