FDIC Modifies Brokered Deposit Rules for Reciprocal Deposits

The FDIC Board has adopted an interim final rule to amend regulations concerning reciprocal deposits, as mandated by the 21st Century ROAD to Housing Act. This rule clarifies the framework for reciprocal deposits, increases the amount agent institutions can exclude from brokered deposit treatment, and expands the definition of "agent institution" to include well-capitalized institutions rated 3.