The FDIC’s Recent Brokered Deposit Rulemaking Might Provide Relief to the Prepaid Industry
By Judie Rinearson and John ReVeal
On December 12, 2019, the Federal Deposit Insurance Corporation (“FDIC”) released a Notice of Proposed Rulemaking (“NPR”) to amend the brokered deposit regulation. While the proposed regulation will not eliminate the restrictions or remove all burdens from those institutions that accept brokered deposits, the NPR indicates that the FDIC has recognized that changes in technology call for changes in regulation. As a result, banks working with innovative prepaid payments companies to provide financial services might get some brokered deposit relief.
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