ICBA-led effort presses FDIC to reconsider deposit insurance for Edwards Jones
A large group of banking associations is petitioning the Federal Deposit Insurance Corp. to reconsider its decision to approve deposit insurance for Edward Jones.
The Independent Community Bankers of America, along with 38 state banking associations, sent a letter to the FDIC asking for a change of heart.
The groups also urged the agency to “carefully monitor the ILC and revoke this approval if conditions that have been imposed are not met, significant changes occur, or new information reveals issues, to mitigate the potential harms to community banks and the rural and underserved areas they serve.”
Other bankers are chiming in.
“From my experience, nothing sucks deposits out of a community at present like Edward Jones,” Brad Bolton, CEO of Community Spirit Bank in Alabama and a past ICBA chairman, wrote on X. “They pay rates 50 [basis points] or more higher than the market.”