Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
U.S. Representatives Andy Barr and French Hill have called on the Federal Deposit Insurance Corporation (FDIC) to retract a proposal regarding brokered deposits. The two representatives, both Republicans, along with their colleagues on the House Financial Services Committee, addressed their concerns in a communication to FDIC Chair Martin Gruenberg.
The proposal in question was introduced in July and aims to modify the regulations that oversee brokered deposits. Reps. Barr and Hill argue that this rule would impose significant changes on banks' liability structures, even for those not currently restricted in accepting brokered deposits.
"This FDIC rule would likely force banks, including ones that do not face restrictions on acceptance of brokered deposits, to significantly alter their liability structures," they stated. "The proposal does not address the actual risks that contribute to bank instability."
For more details, readers are encouraged to view the full letter or refer to an exclusive interview with American Banker.
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