{"id":489,"date":"2024-10-10T12:45:21","date_gmt":"2024-10-10T16:45:21","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/bankinglaw\/?p=489"},"modified":"2024-10-10T12:45:23","modified_gmt":"2024-10-10T16:45:23","slug":"fdic-extends-comment-period-for-proposed-rule-on-brokered-deposits","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2024\/10\/10\/fdic-extends-comment-period-for-proposed-rule-on-brokered-deposits\/","title":{"rendered":"FDIC Extends Comment Period for Proposed Rule on Brokered Deposits"},"content":{"rendered":"\n<p>On October 8, 2024, the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) <a href=\"https:\/\/www.fdic.gov\/news\/press-releases\/2024\/fdic-announces-extension-comment-period-proposed-changes-its-brokered\" data-type=\"link\" data-id=\"https:\/\/www.fdic.gov\/news\/press-releases\/2024\/fdic-announces-extension-comment-period-proposed-changes-its-brokered\">announced<\/a> an extension to the comment period on its notice of proposed rulemaking (&#8220;NPR&#8221;) regarding brokered deposits. Originally, the comment period for the PR was to close on October 22, 2024, but is now planned to close on November 21, 2024. <br><br>The original NPR, \u201cUnsafe and Unsound Banking Practices: Brokered Deposits Restrictions,\u201d  was published by the FDIC this past August.  The NPR  would revise 12 C.F.R. Parts 303 and 337 with a goal of improving the analysis of \u201cdeposit brokers\u201d and ensure accurate reporting of such deposits.<\/p>\n\n\n\n<p>The NPR seeks to achieve these goals with a few key revisions, among others.  First, the FDIC is proposing to update the definition of a &#8220;deposit broker, &#8221; particularly with respect to the analysis of the \u201cprimary purpose\u201d exception to the definition, which is critical for anyone trying to avoid brokered deposit classification.  Second, the NPR continues to exempt well-capitalized institutions from brokered deposit restrictions, but will generally enhance the rules for other insured depository institutions to &#8220;strengthen the safety and soundness of the banking system by ensuring that less than well-capitalized institutions are restricted from relying on brokered deposits to support risky, rapid growth.&#8221;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The NPR can be found at <a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/08\/23\/2024-18214\/unsafe-and-unsound-banking-practices-brokered-deposits-restrictions\">https:\/\/www.federalregister.gov\/documents\/2024\/08\/23\/2024-18214\/unsafe-and-unsound-banking-practices-brokered-deposits-restrictions<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>On October 8, 2024, the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;) announced an extension to the comment period on its notice of proposed rulemaking (&#8220;NPR&#8221;) regarding brokered deposits. Originally, the comment period for the PR was to close on October 22, 2024, but is now planned to close on November 21, 2024. The original NPR, \u201cUnsafe &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/bankinglaw\/2024\/10\/10\/fdic-extends-comment-period-for-proposed-rule-on-brokered-deposits\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;FDIC Extends Comment Period for Proposed Rule on Brokered Deposits&#8221;<\/span><\/a><\/p>\n","protected":false},"author":693,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[503,110],"ppma_author":[502],"class_list":["post-489","post","type-post","status-publish","format-standard","hentry","category-general","tag-brokered-deposits","tag-fdic"],"authors":[{"term_id":502,"user_id":693,"is_guest":0,"slug":"jsilvia","display_name":"Joseph E. Silvia","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2024\/09\/silviajoseph-100x100.jpg","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/693"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=489"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/489\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=489"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}