Sec. 2. Findings and purpose
154 words·~1 min read·
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Congress finds that— restrictions on the acceptance of brokered deposits were enacted in 1989 in order to prevent the abuse of the deposit insurance system by troubled depository institutions; since the enactment of the restrictions described in paragraph (1), technological and demographic developments have changed the way in which depository institutions seek and source deposits, and, as a result, many deposits that are classified as brokered pose little, if any, risk to the deposit insurance system; and in today’s economy, the greatest risk to the deposit insurance system is asset growth by depository institutions that are less than well capitalized.
The purpose of this Act, and the amendments made by this Act, is to remove the current (as of the date of enactment of this Act) restrictions on brokered deposits and to authorize the Federal Deposit Insurance Corporation to issue regulations that restrict asset growth by depository institutions that are less than well capitalized.