Proposed Rule2025-04088

Unsafe and Unsound Banking Practices: Brokered Deposits Restrictions; Guidelines Establishing Standards for Corporate Governance and Risk Management for Covered Institutions With Total Consolidated Assets of $10 Billion or More; Regulations Implementing the Change in Bank Control Act; Withdrawal

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
March 14, 2025

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

The Federal Deposit Insurance Corporation (FDIC) is withdrawing notices of proposed rulemaking relating to brokered deposit restrictions, corporate governance and risk management, and the Change in Bank Control Act. If the FDIC decides to pursue future regulatory action in any of these areas, it will issue a new proposed rule.

Full Text

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<title>Federal Register, Volume 90 Issue 49 (Friday, March 14, 2025)</title>
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[Federal Register Volume 90, Number 49 (Friday, March 14, 2025)]
[Proposed Rules]
[Page 12115]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-04088]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 90, No. 49 / Friday, March 14, 2025 / 
Proposed Rules

[[Page 12115]]



FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 303, 308, 337, and 364

RIN 3064-AF99, 3064-AF94, and 3064-AG04


Unsafe and Unsound Banking Practices: Brokered Deposits 
Restrictions; Guidelines Establishing Standards for Corporate 
Governance and Risk Management for Covered Institutions With Total 
Consolidated Assets of $10 Billion or More; Regulations Implementing 
the Change in Bank Control Act; Withdrawal

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Proposed rule; withdrawal.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is 
withdrawing notices of proposed rulemaking relating to brokered deposit 
restrictions, corporate governance and risk management, and the Change 
in Bank Control Act. If the FDIC decides to pursue future regulatory 
action in any of these areas, it will issue a new proposed rule.

DATES: The FDIC is withdrawing the proposed rules published at 89 FR 
68244 (August 23, 2024), 88 FR 70391 (October 11, 2023), and 89 FR 
67002 (August 19, 2024) as of March 14, 2025.

FOR FURTHER INFORMATION CONTACT: Brokered Deposits: Vivek Khare, Senior 
Counsel, 202-898-6847, (<a href="/cdn-cgi/l/email-protection#1f6974777e6d7a5f797b767c31787069"><span class="__cf_email__" data-cfemail="36405d5e5744537650525f5518515940">[email&#160;protected]</span></a>); Corporate Governance: 
Annmarie Boyd, Assistant General Counsel, 202-898-3714, 
(<a href="/cdn-cgi/l/email-protection#ddbcbfb2a4b99dbbb9b4bef3bab2ab"><span class="__cf_email__" data-cfemail="066764697f624660626f6528616970">[email&#160;protected]</span></a>); Change in Bank Control: Annmarie Boyd, Assistant 
General Counsel, 202-898-3714, (<a href="/cdn-cgi/l/email-protection#2243404d5b466244464b410c454d54"><span class="__cf_email__" data-cfemail="8aebe8e5f3eecaeceee3e9a4ede5fc">[email&#160;protected]</span></a>).

SUPPLEMENTARY INFORMATION:

Background

    The FDIC is withdrawing the notices of proposed rulemaking 
described below. The FDIC no longer intends to issue final rules with 
respect to these proposals. If the FDIC decides to pursue future 
regulatory action in any of these areas, it will issue a new proposed 
rule.

Brokered Deposits Proposal

    On August 23, 2024, the FDIC published a proposed rule that would 
have significantly revised its regulations related to brokered 
deposits.\1\ Revamping the brokered deposit rule would be a major 
undertaking that would significantly disrupt many aspects of the 
deposit landscape. Among other issues, the proposal would have adopted 
a narrow interpretation of the primary purpose exception inconsistent 
with the plain meaning of the law, and a broad, sweeping provision 
related to fees and remuneration. More generally, the proposal failed 
to account for the myriads of ways in which deposit arrangements have 
evolved over the years.
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    \1\ See 89 FR 68244 (Aug. 23, 2024).
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Corporate Governance Proposal

    On October 11, 2023, the FDIC published a proposed rule that would 
have established new, enforceable safety and soundness standards 
related to corporate governance for FDIC-supervised institutions with 
$10 billion or more in total consolidated assets.\2\ Although the FDIC 
recognizes that sound corporate governance and appropriate controls are 
important for banks of all sizes, the proposed rule would have created 
a number of overly prescriptive and process-oriented expectations 
rather than focusing on core safety and soundness risks. In addition, 
the proposed rule would have conflated the roles of management and the 
board of directors, created unworkable expectations, and, in certain 
areas, would have conflicted with applicable state law.
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    \2\ See 89 FR 88 FR 70391 (October 11, 2023).
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Change in Bank Control Act Proposal

    On August 19, 2024, the FDIC published a proposed rule that would 
have amended its regulations implementing the Change in Bank Control 
Act by removing an exemption from the requirement to submit a notice to 
the FDIC for an acquisition of voting securities of a depository 
institution holding company for which the Federal Reserve reviews a 
Change in Bank Control Act notice.\3\ Removing this exemption would 
have required a wide range of bank investors to file duplicative 
notices with both the FDIC and the Federal Reserve System and could 
have discouraged capital investments in FDIC-supervised banks.
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    \3\ See 89 FR 67002 (Aug. 19, 2024).
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Withdrawal of Proposed Rules

    The FDIC is withdrawing these notices of proposed rulemaking 
because, as noted above, it no longer intends to issue final rules with 
respect to these proposals. If the FDIC decides to pursue future 
regulatory action in any of these areas, it will do so by publishing a 
new proposed rule or other issuance consistent with the requirements of 
the Administrative Procedure Act, as applicable.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on March 3, 2025.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2025-04088 Filed 3-13-25; 8:45 am]
BILLING CODE 6714-01-P


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Indexed from Federal Register on March 14, 2025.

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