The Federal Deposit Insurance Corp. should withdraw its proposal to strengthen restrictions on “hot money” or release more data used to justify the plan, leading bank and fintech trade groups demanded.
The FDIC’s July proposal would broaden what qualifies as a brokered deposit and make it harder for banks facing funding troubles to bolster their deposit bases with fintech and other accounts. The agency cited “recent experience” from the 2023 banking mini-crisis that saw the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank as a justification for the changes.
But the latest proposal doesn’t specify how the ...
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