If an insured depository institution ceases to be well capitalized after the opening of a brokered CD account but before the maturity of the account, must the institution close the account immediately...?

Compliance > Deposits > Brokered Deposits
Q:  If an insured depository institution ceases to be well capitalized after the opening of a brokered CD account but before the maturity of the account, must the institution close the account immediately (assuming the institution does not obtain a waiver to accept brokered deposits), or can the institution wait until the CD matures before closing the account?
 
A:    For a maturing CD, the deposit is accepted when the CD rolls over. Therefore, assuming a third party would be involved with the renewal of the account, the insured depository institution can wait until the maturity of the CD before closing the account.
 

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

Add Feedback