Average daily balance seems to be the stick here. God only knows how a broker could spin up Windows for these type of things. Gunnar ---------- Forwarded message --------- From: Barbara Hagenbaugh <bhagenbaugh@fsforum.com> Date: Thu, Nov 21, 2024, 4:59 PM Subject: FDIC Proposed Rule on Brokered Deposits is Unwarranted To: Gunnar Larson <G@xny.io> Proposed changes to brokered deposit regulations would create unnecessary costs to the economy. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ <https://financialservicesforum.cmail19.com/t/r-l-tduihttd-njyjukhihy-r/> *FDIC Proposed Rule on Brokered Deposits is Unwarranted* *Proposed changes to brokered deposit regulations would unnecessarily reverse recently established policy, disrupt stable, long-term deposit relationships, and harm the economy* *Washington, D.C. –* A proposed rule from the Federal Deposit Insurance Corporation (FDIC) to amend its regulations related to brokered deposits would lead to higher costs for consumers and businesses across the economy, the Financial Services Forum said Thursday. Brokered deposits are funds collected by a broker from multiple customers and deposited into a bank. As financial institutions navigate market challenges, brokered deposits play a vital role in diversifying funding sources and enhancing overall stability. In 2020, the FDIC significantly modernized its brokered deposits regulations following a multi-year comment period. If adopted, the proposed rule would reverse recently established policy without adequate reasoning or justification, potentially destabilizing the brokered deposit marketplace and creating unnecessary costs to the economy. In a letter to the FDIC, the Forum stated that reversing existing rules would disrupt long-established arrangements. The proposed rule would impose significant costs to the banking sector, including the U.S. Global Systemically Important Banks, which are subject to the most stringent prudential requirements. That would ultimately result in higher costs for consumers and businesses and act as a drag on the economy as a whole. “This rapid reversal of existing regulatory practices would impede the practice of safe and sound banking by reducing consistency and transparency surrounding the FDIC’s expectations,” Forum President and CEO Kevin Fromer said. “The FDIC should not engage in such a broad rulemaking that would unnecessarily destabilize its own recently settled approach without first understanding the potential costs and benefits of the Proposal.” The Forum’s full letter can be found here <https://financialservicesforum.cmail19.com/t/r-l-tduihttd-njyjukhihy-y/>. The Forum also joined a letter on the topic with The Bank Policy Institute, American Bankers Association, U.S. Chamber of Commerce, Financial Technology Association, Independent Community Bankers of America, and Securities Industry and Financial Markets Association. 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