Sweeps Ineligible for FDIC Insurance?
Today's Wall Street Journal writes "FDIC Issues New Deposit Rules for Big Banks", which says, "The agency said it will consider whether to make automated sweep transactions at banks of all sizes ineligible for deposit insurance. These refer to transactions that move money back and forth among different accounts to capture higher yields." It continues, "Swept funds that are transferred from insured deposit accounts to nondeposit investment vehicles or accounts may not qualify for deposit insurance, the FDIC said, though the agency said it would defer implementing that change until July 1, 2009. The agency is expected to finalize the sweep-account rules after receiving comments from the industry." (See FDIC's Financial Institution Letter here.) In other news, WSJ also writes, "Auction Prices Cheyne".
