Just wondering if anyone can point me to information on this regulation repeal and its affects on banking. Thanks

Repeal? Did I miss something? Most of the guts of the reg that capped the rates we could pay and had specific minimum early withdrawal penalties were stripped out a decade ago. What's left, unless there is something I missed, is the limits on the value of premiums we can give out for demand deposits. The reg still exists but as a mere shell of its former self.

What long term opportunity it could lead banks into for the paying of interest on business accounts and how the bottom line may be affected by these actions. Giving the banking industry a chance to pull back funds from other sources.
Just wondering how others may be approaching this change.

I got a "spam" e-mail advertising a seminar on this yesterday. I think it was $275. Delete!

There is a change proposed allowing interest on business deposits, but those bills have been pending for quite some time and I haven't heard any rumblings that change is definitely coming or exactly what those changes are. And I am not spending my time or money planning on these unknowns that will also likely have long term implementation time-lines.

There's an interesting post HERE relating to this subject, possible impact, etc.

I've done an extensive study and have determined that this tired old chestnut gets revived in the category of "urban myth" once every 6 months.

There's just no pressure to get this done with interest rates as low as they are. Frankly, it would be the best time for banks to have to implement it, since the interest cost would be minimal.

As stated in the article above (URL), it could happen, but I'm hoping that it will not happen. Repeal would surely hurt small banks. Recently, a huge S&L moved into town posting over market rates on CD's and other products, placing adds on TV, etc. The big players can easily bury small banks through loss leaders and adding the payment of interest on business deposits to their bag of tricks would not be good for the system, unless local market factors also require consideration.

In other words, deregulation doesn't work very well, e.g. telephones, airlines, etc.