FDIC publishes brokered deposits proposal

The FDIC has published [85 FR 7453] its previously announced (see our 12/13/2019 Top Story) proposal to revise its regulations at 12 CFR parts 303 and 337 relating to the brokered deposits restrictions that apply to less than well capitalized insured depository institutions. The proposed rule would create a new framework for analyzing certain provisions of the “deposit broker” definition, including “facilitating” and “primary purpose.” The proposed rule would also establish an application and reporting process with respect to the primary purpose exception. The application process would be available to insured depository institutions and third parties that wish to utilize the exception. The 60-day comment period ends April 10, 2020.