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O’Melveny’s Patel Quoted in American Banker on FDIC Reforms

August 06, 2015 American Banker’s July 17, 2015, article “FDIC Plan Could Force Banks To Rethink Deposit Strategies,” quotes O’Melveny & Myers counsel Bimal Patel.  The piece discusses how proposed adjustments to the Federal Deposit Insurance Corp.'s (FDIC) small bank assessment formula may become a significant factor in influencing deposit strategies.  Under the present scheme, “the ‘adjusted brokered deposit ratio’ is only triggered for healthy institutions when at least 10% of a bank’s deposits are brokered and its assets have grown at least 40% over the previous four years,” while the new core deposit ratio will apply to any institution subject to the new small-bank formula, the article said.  "The brokered deposit effect will apply more frequently in that it will make its way into the model and make its way into the assessment," Patel told the publication.

Patel is Head of the Firm’s Financial Advisory and Regulation Practice, a member of the Financial Services Practice, and resides in O’Melveny’s Washington, DC and New York offices.