Brokered Deposit

Brokered Deposit

A large sum of money composed of many smaller sums offered to a broker by investors. The small sums are compiled into a brokered deposit to qualify for a higher interest rate when the broker deposits it into an investment vehicle.
References in periodicals archive ?
Keating's top lieutenant, Judy Wisher, once said in court testimony that the Regardie's piece was "very, very damaging," that it curtailed the thrift's brokered deposit program and caused lenders to refuse to renew some of its holding company's credit lines.
During the first quarter of 2010, community bank deposits decreased as a result of CDARS[R] deposits that matured, which were not renewed or rolled-over as a result of such deposits being deemed brokered and the Bank's brokered deposit restriction, which is discussed below.
While that approach has some appeal, it has the obvious disadvantage that it would eliminate those aspects of the brokered deposit market that serve a constructive purpose.
The bulk of what you are seeing is our brokered deposit activity, which is necessary to fund the loan demand we've had," said Nat Bothwell, ANB's marketing director.
The agreement requires, among other things, that the Bank strengthen capital, address deterioration of asset quality, and formalize written plans related to credit concentrations, liquidity, and brokered deposit levels.
Total deposits, which include brokered deposits, increased USD5.
57 billion of those were brokered deposits held with the former ANB Financial of Bentonville.
Jacksonville-based EverBank has agreed to assume all deposits, excluding certain brokered deposits.
Brokered deposits combined with rapid asset growth have played a role in a number of costly failures, including some recent ones, said FDIC.
In addition, institutions that are not allowed to accept brokered deposits may also lose "pass-though" deposit insurance on new deposits or rollovers of existing deposits obtained from fiduciaries such as pension funds and insurance companies.
These requirements include prompt corrective action rules, risk-related insurance premiums and brokered deposits.
But as regulators have taken drastic actions to intimidate financial institutions from using brokered deposits, either as a source of funds or as earning assets, CD rates are no longer even a crude indicator.