FDIC Overhauls Brokered Deposit Regulation
In December 2020, the FDIC approved a Final Rule to reframe the definition and exceptions for “brokered deposits”. Historically, the FDIC has broadly defined virtually any third party connecting a depositor with a bank as a “deposit broker” and the resulting deposits as “brokered deposits”. The Final Rule responds to long-standing industry criticisms seeking to narrow these terms. The Final Rule aims to permit substantially more deposits to be excluded from treatment as “brokered deposits”…