FDIC Proposes Repeal of Interest Prohibition on Deposits, Moves Definition of Interest into Deposit Insurance Regulations

Summary

The FDIC is proposing to repeal regulations that prohibit the payment of interest on demand deposits, effective July 21, 2011, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and to retain the definition of interest in the deposit insurance regulations to facilitate interpretation of a recent statutory amendment providing temporary, unlimited deposit insurance coverage for noninterest-bearing transaction accounts.