Alert July 29, 2008

FDIC Issues Large-Bank Insurance Determination Modernization Final Rule

The FDIC issued a final rule requiring certain large banks to facilitate the process for determining the insurance status of depositors of a failed bank. The rule applies only to an estimated 159 “covered institutions,” defined as any insured depository institution with at least $2 billion in domestic deposits and either (1) more than 250,000 deposit accounts or (2) total assets over $20 billion, regardless of the number of deposit accounts. The rule takes effect on August 18, 2008, and allows for an 18-month implementation period. Click here for the rule.