When an institution is less than well capitalized, must it refuse to renew or roll over a brokered CD if the deposit broker (at the time of renewal or rollover) continues to be involved with the account?

Compliance > Deposits > Brokered Deposits
Q:  When an institution is less than well capitalized, must it refuse to renew or roll over a brokered CD if the deposit broker (at the time of renewal or rollover) continues to be involved with the account?
 
A:    Yes. Under Section 29 of the FDI Act, if an insured depository institution is not well capitalized, the institution will be prohibited from accepting (i.e., renewing) the brokered CD account without a waiver from the FDIC.
 

This can be found in FDIC’s FAQs on Brokered Deposits, which can be found at https://www.fdic.gov/news/news/financial/2015/fil15002a.pdf

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