Bank Brokered Deposits: New FDIC Guidance on Identifying, Accepting and Reporting Deposits
Meeting FDIC Expectations and Reporting Requirements in an Era of Heightened Scrutiny
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide counsel with a review of the regulatory scheme for bank acceptance of brokered deposits in light of recent and existing FDIC guidance. In Jan. 2015, the FDIC released a Financial Institution Letter (FIL) providing guidance for depository institutions regarding its brokered deposit regulations. The FDIC prohibits the acceptance of brokered deposits by “undercapitalized" banks and requires “adequately capitalized” banks to obtain a waiver to accept brokered deposits.
Outline
- Overview of the brokered deposit market
- Brief history of the brokered deposit restrictions
- Sources of FDIC guidance on brokered deposits
- Analysis of FDIC’s recent FIL on brokered deposits
- Regulatory restrictions on brokered deposits
- Scope of “deposit broker” definition
- Exceptions from the definition, including “primary purpose” and listing services
- Application of the guidance to pre-paid card deposits
- Consequences of accepting brokered deposits
Benefits
The panel will review these and other key issues:
- What activities will the FDIC view as “facilitating” a brokered deposit?
- What clarification does the FDIC provide on the “primary purpose” exception to the definition of deposit broker?
- What steps should depository institutions take to ensure they comply with FDIC guidance?
- What can the banking industry do to change the perception of brokered deposits?
Faculty
Paul T. Clark
Partner
Seward & Kissel
Mr. Clark provides regulatory and transactional advice to a wide range of clients, including banks, broker-dealers,... | Read More
Mr. Clark provides regulatory and transactional advice to a wide range of clients, including banks, broker-dealers, investment advisers and investment funds. He is widely recognized as the leading expert on federal and state banking and securities law issues related to the offering of bank deposit products by broker-dealers and other regulated financial institutions. Mr. Clark has advised on the structure of numerous bank deposit programs, including the first dual deposit account sweep program, the first “reciprocal” deposit program and the first CD program to use an issuing and paying agent.
CloseDavid F. Freeman, Jr.
Partner
Arnold & Porter
Mr. Freeman is head of the firm's Financial Services Practice Group. He represents financial institutions,... | Read More
Mr. Freeman is head of the firm's Financial Services Practice Group. He represents financial institutions, investment managers, and broker-dealers on a variety of matters including banking and securities regulatory issues, legislation, M&As, private investment funds, and new product development and documentation. Mr. Freeman advises clients on strategic initiatives with federal financial regulatory, legislative, and public policy implications, and advises domestic and foreign banks, investment management firms, and broker-dealers on compliance with state and federal banking and securities laws, federal commodities laws, and SRO rules.
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