ABA Statement on Today’s FDIC Board Meeting

“We’re disappointed that the FDIC’s brokered deposits proposal would reverse important reforms put in place in 2020. This sweeping measure would restrict access to sources of liquidity while penalizing banks for pursuing funding sources that enable them to meet the needs of their communities. Additionally, we are skeptical about the FDIC’s plan to use the brokered deposits framework to regulate bank partnerships with crypto and fintech companies.

“We are also concerned about the FDIC’s decision to move forward with this proposal and the lengthy list of items on today’s agenda. Given the pending change in FDIC leadership, we question the need to advance an array of unrelated regulatory changes — with unusually short comment periods — that clearly lack consensus support within the agency. We will review today’s FDIC actions with our members and provide input in the weeks ahead.”