The Federal Deposit Insurance Corp. is considering changing its rules governing brokered deposits, as American Banker recently reported. A number of bankers have urged the FDIC to liberalize the current rules so they might fund their banks more readily and extensively by purchasing money from deposit brokers. I would caution bankers and the FDIC to tread cautiously in this area.
BankThink A cautionary tale on brokered deposits By William M. Isaac
November 9, 2018