Vote Smart's Synopsis:

Vote to pass a bill that amends the treatment of certain types of deposits so they are no longer classified as brokered deposits. Brokered deposits are funds placed by a broker on behalf of a client in a depository institution to maximize interest rates and for depository insurance purposes.

Highlights:

• Amends the treatment of certain types of deposits so they are no longer classified as brokered deposits. Brokered deposits are funds placed by a broker on behalf of a client in a depository institution to maximize interest rates and for depository insurance purposes. Currently, institutions that accept brokered deposits may be subject to additional oversight (Sec. 2).

• Specifies that under the bill, custodial deposits at insured depository institutions with less than $10 billion in total assets shall not be treated as brokered deposits if the deposits do not exceed 20% of the institution’s liabilities (Sec. 2).

• Species that the institution must be well-capitalized and have a specified minimum soundness rating, or have a waiver from the Federal Deposit Insurance Corporation (Sec. 2).

• Establishes that the provisions of this bill generally apply existing interest rate limits applicable to institutions that are not well-capitalized to similar institutions that accept custodial deposits (Sec. 2).

Full Bill Text

Full Bill Text