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B-332916 Feb 05, 2021 1 (2021-02-05)

handle is hein.gao/gaobaecqw0001 and id is 1 raw text is: U.S. GOVERNMENT ACCOUNTABILITY OFFICE G A O A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Washington, DC 20548 B-332916 February 5, 2021 The Honorable Sherrod Brown Chairman Ranking Member Committee on Banking, Housing, and Urban Affairs United States Senate The Honorable Richard Neal Chairman The Honorable Kevin Brady Republican Leader Committee on Ways and Means House of Representatives Subject: Federal Deposit Insurance Corporation: Unsafe and Unsound Banking Practices: Brokered Deposits and Interest Rate Restrictions Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Federal Deposit Insurance Corporation (FDIC) entitled Unsafe and Unsound Banking Practices: Brokered Deposits and Interest Rate Restrictions (RINs: 3064-AE94; 3064-AF02). We received the rule on January 22, 2021. It was published in the Federal Register as a final rule on January 22, 2021. 86 Fed. Reg. 6742. The effective date of the rule is April 1, 2021, with an extended compliance date of January 1, 2022. FDIC states this final rule finalizes revisions to the regulations relating to the brokered deposits and interest rate restrictions that apply to less than well capitalized insured depository institutions. According to FDIC, for brokered deposits, the rule establishes a new framework for analyzing certain provisions of the deposit broker definition, including facilitating and primary purpose. For the interest rate restrictions, FDIC states it is amending its methodology for calculating the national rate, the national rate cap, and the local market rate cap. Further, FDIC states that the rule explains when nonmaturity deposits are accepted and when nonmaturity deposits are solicited for purposes of applying the brokered deposits and interest rate restrictions. Enclosed is our assessment of FDIC's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398. Shirley A. Jones Managing Associate General Counsel Enclosure cc: M. Andy Jiminez Director, Office of Legislative Affairs Federal Deposit Insurance Corporation

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