Does FDIC's insurance liability increase because of brokered deposits?
The question I asked comes from the following context: Deposit brokers seem to systematically guide funds into the riskiest banks that pay elevated percentage by breaking down deposits in excess of $250,000 into several parts thus making sure that the entire deposit no matter how big is fully insured.
Answers:
That is what the brokers are supposed to do. You use of the word "seem" is misleading. They would be slipshod if they did not do it.
Deposit brokers! - what are you talking about - financial adviser? - Only banks with Fica charters can create compact disc accounts - up to 250,000 for the Insurance limit. Of Course, those accounts are going to the banks paying the most interest. If someone have millions of dollars to invest then maybe they hire "brokers" to furrow these funds into higher paying vehicles, but comprehend you can only enjoy those elevated interest rates for a standard one or two year term. And each statement must be applied for IN PERSON. No viable business entity deposits funds into 2 year interest bearing account.
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Answers:
That is what the brokers are supposed to do. You use of the word "seem" is misleading. They would be slipshod if they did not do it.
Deposit brokers! - what are you talking about - financial adviser? - Only banks with Fica charters can create compact disc accounts - up to 250,000 for the Insurance limit. Of Course, those accounts are going to the banks paying the most interest. If someone have millions of dollars to invest then maybe they hire "brokers" to furrow these funds into higher paying vehicles, but comprehend you can only enjoy those elevated interest rates for a standard one or two year term. And each statement must be applied for IN PERSON. No viable business entity deposits funds into 2 year interest bearing account.
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