FDIC Extends Comment Deadline on Proposal to Revise Brokered Deposit Regime

The FDIC extended the comment deadline on a proposal to revise its brokered deposit regime from April 10, 2020 to June 9, 2020.

The amendments would establish a new framework for analyzing certain provisions of the "deposit broker" definition, including what constitutes "facilitating the placement of deposits" and the circumstances in which the "primary purpose exception" apply (see prior coverage). The proposal would also establish an application process for insured depository institutions and third parties that seek to use the primary purpose exception.