The FDIC recently issued a proposed rule change on how brokered deposits are treated. This isn’t so much a proposed change but a rollback. A roll way back. Way back to 1989 when the original brokered deposit rule was written. As Jason Mikula points out, that’s when Taylor Swift was born. Jason M, Alex Johnson, Kiah Haslett and Alex Barrage of Troutman Pepper have some hot takes with Jason Henrichs on how the business of banking has changed through the eras and the implications for the future. Also, the views expressed are those of the individuals and not their respective employers – the lawyers made us add that.

Read the entire transcript here.

Brett King and Jason Henricks introduce the episode, featuring a panel discussion on the FDIC’s proposed changes to broker deposit rules.

The panel explains the proposed rule changes, comparing them to the original 1989 statute and analyzing their relevance in today’s banking landscape.

A debate over whether the FDIC’s rollback is a necessary step or an overreaction, with a focus on the lack of modern data to support the changes.

Discussing the impact of technology, consumer behavior, and open banking on the stickiness of deposits, making the case for nuanced regulation.

Exploring the idea that modern consumers act as their own deposit brokers, reshaping how banks should approach liquidity and risk.

Analyzing how innovations like FedNow and open banking could transform deposit flows, amplifying risks in ways the proposed rule doesn’t address.

Panelists highlight how regulators’ legacy frameworks may fail to capture emerging risks, from fintech partnerships to instantaneous deposit movement.

The potential fallout of the rule for fintech partnerships, community banks, and consumer access to innovative banking solutions.

The episode wraps up with reflections on the importance of public comments and industry collaboration to guide smarter regulatory decisions.