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FDIC Withdraws Pending Proposed Rule on Brokered Deposits

On March 3, 2025, the Federal Deposit Insurance Corporation (“FDIC”) withdrew its pending proposed rule on brokered deposits (the “Proposal”), originally published in the Federal Register on August 23, 2024. The Proposal,...more

FDIC Whipsaws Industry with Proposed Changes to Brokered Deposits Rules

1. Introduction and Summary - On July 30, 2024 – a mere 32 months after adopting a new regulatory framework for brokered deposits in December 2020 (the “Current Rules”) – the Federal Deposit Insurance Corporation (“FDIC”)...more

FDIC Recognizes Additional Designated Business Relationship Meeting Primary Purpose Exemption

The Federal Deposit Insurance Corporation (“FDIC”) has recognized a new designated business relationship that confirms that an agent, such as a broker-dealer, placing deposits of a customer with an insured depository...more

FDIC Staff Issues Statement Requiring Banks to Scrutinize Primary Purpose Exception Notices

On July 15, 2022, the Division of Risk Management Supervision (the “Staff”) of the Federal Deposit Insurance Corporation (“FDIC”) published a two-page statement (the “Statement”) “to remind” insured depository institutions...more

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