Brokered Deposits: FDIC Seeks Public Input as It Comprehensively Reviews Brokered Deposit and Interest Rate Regulations

Sullivan & Cromwell LLP - December 20, 2018

On December 18, 2018, the FDIC approved an advance notice of proposed rulemaking (the “ANPR”) in connection with a “comprehensive review of the regulatory approach to brokered deposits and the interest rate caps applicable to banks that are less than well capitalized.” The ANPR does not propose specific revisions to the brokered deposit regulations (or provide specific answers to interpretive questions), but sets forth the history of the FDIC’s current regulatory framework and summarizes interpretive issues the FDIC has considered. The ANPR provides for a 90-day period during which the FDIC will accept comment on “all aspects of the [FDIC’s] brokered deposits and interest rate regulations,” including with respect to a series of questions that appear designed to provide input to the FDIC on the desirability of possible changes, particularly in light of technological and business innovations that have occurred since the brokered deposit regulations were adopted.