On March 3, 2025, the Federal Deposit Insurance Corporation (“FDIC”) withdrew its pending proposed rule on brokered deposits (the “Proposal”), originally published in the Federal Register on August 23, 2024. The Proposal, which was discussed at length in a prior S&K Client Memo from August 2024, would have substantially altered existing FDIC regulations related to brokered deposits. In withdrawing the Proposal, the FDIC stated the Proposal’s narrow interpretation of the primary purpose exception was inconsistent with the plain meaning of the law, the Proposal’s provision dealing with fees and remuneration was overly broad, and the Proposal failed to recognize the ways in which deposit arrangements have changed over the years.
If the FDIC chooses to pursue this matter again in the future, the Administrative Procedure Act would require it to issue a new proposal.
