BELTWAY
Broke[red], So Fix It
The FDIC announced a "comprehensive review [of its]
regulatory approach to brokered deposits and interest rate
caps" for banks that are not "well-capitalized" with
the release of an APNR. According to the FDIC, the review is
driven by significant changes in technology, business models,
products, and the economic environment. Under existing rules, banks
that are not well-capitalized are subject to restrictions on
brokered deposits and interest rate cap, but banks have argued that
the regulations are outdated and unclear. The APNR seeks public
comment on modifications to the regulations, including whether (1)
certain deposits should not be considered brokered deposits, (2)
there have been changes in the financial services industry that the
FDIC should consider in its review of the regulations, (3) changes
to Call Reports are required for purposes of brokered deposits, and
(4) there are alternatives to existing interest rate
