As a current status report on this topic...There are currently only seven comments posted as a response to this invitation. I think the regulators are getting good insights from the comments submitted so far. However, volume is important too. I hope every bank executive will add their voice and support to addressing this issue in a timely manner. It doesn't take much time and effort. While new insights from you can create additional traction, your emphasis and perspective on points already made could also be beneficial in shaping the next regulatory environment in this regard.
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Neil Stanley
TS Banking Group
Treynor, Iowa
------------------------------
-------------------------------------------
Original Message:
Sent: 02-13-2019 19:59
From: Mary Fowler
Subject: Comments to FDIC on rate cap rules
The comment period on the rate cap rule and brokered deposits is now open. See:
https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2018-28273.pdf
I hope you will join me in the attempt to make common-sense changes to the rules which could threaten our industry in general, and our own banks in particular. The national average rate needs to be recognized as the big mistake that it is. It's not hard to see that a national average rate of .71% for a 12 month Jumbo CD just isn't anywhere near a correct market rate. Here is a link to the National Average Rates and Rate Caps:
FDIC: Weekly National Rates and Rate Caps - Weekly Update
With the one year US Treasury (the safest investment possible) at 2.57%, how can anyone defend the idea that the current market rate for a 12 month Jumbo CD is anywhere near .71%? This needs to be corrected yesterday, just as the FDIC corrected it in 2009 without any legislation. Our bank is losing 12 month CD renewals frequently, even though we are offering 2.64% APY for one year. There is a problem here, and in the event of a recession it would probably be a disaster. Please work with us to protect your jobs and our jobs and the banking industry. Here is a link to see or submit comments:
FDIC: Federal Register Citations
Thank you.
------------------------------
Mary Fowler
Chief Executive Officer
The Peoples Bank
------------------------------
------------------------------
Neil Stanley
TS Banking Group
Treynor, Iowa
------------------------------
-------------------------------------------
Original Message:
Sent: 02-13-2019 19:59
From: Mary Fowler
Subject: Comments to FDIC on rate cap rules
The comment period on the rate cap rule and brokered deposits is now open. See:
https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2018-28273.pdf
I hope you will join me in the attempt to make common-sense changes to the rules which could threaten our industry in general, and our own banks in particular. The national average rate needs to be recognized as the big mistake that it is. It's not hard to see that a national average rate of .71% for a 12 month Jumbo CD just isn't anywhere near a correct market rate. Here is a link to the National Average Rates and Rate Caps:
FDIC: Weekly National Rates and Rate Caps - Weekly Update
With the one year US Treasury (the safest investment possible) at 2.57%, how can anyone defend the idea that the current market rate for a 12 month Jumbo CD is anywhere near .71%? This needs to be corrected yesterday, just as the FDIC corrected it in 2009 without any legislation. Our bank is losing 12 month CD renewals frequently, even though we are offering 2.64% APY for one year. There is a problem here, and in the event of a recession it would probably be a disaster. Please work with us to protect your jobs and our jobs and the banking industry. Here is a link to see or submit comments:
FDIC: Federal Register Citations
Thank you.
------------------------------
Mary Fowler
Chief Executive Officer
The Peoples Bank
------------------------------
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