Rate Cap

Sounded to me based on commentary from the FDIC Chair was that they were trying to accelerate the rate cap issue resolution by end of this year.

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Glen Stiteley
CFO
Investors Community Bank
Manitowoc WI
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Original Message:
Sent: 07-04-2019 14:04
From: Mary Fowler
Subject: Rate Cap

Good article about the rate cap:
"The Biggest Threat to the Deposit Insurance Fund I've Ever Seen"

http://www.bankdirector.com/		remove preview
"The Biggest Threat to the Deposit Insurance Fund I've Ever Seen" A little-known rule called the national rate cap is putting community banks in a bind. The cap tries to set a high-water mark for rates by calculating a weekly average of advertised interest rates for specific deposit products at branches, plus 75 basis points. View this on http://www.bankdirector.com/ >

A point I wish the article had made:  The rates used now to calculate the rate cap are not prevailing rates, or market rates, but posted rates. There is a huge difference, and the result is an average rate and a rate cap that is far below market.

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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia AR
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