December 18, 2008 / Law Alert

Recent Changes In FDIC Deposit Insurance Impact Sweep Accounts

Corporate treasurers and CFOs should carefully consider the impact on sweep accounts of recent changes in the FDIC's deposit insurance programs. These changes may frustrate a common goal for sweep accounts: achieving a high effective yield on a fully-insured account. Failure to account for recent changes could leave funds unprotected by FDIC insurance in the event of a bank failure.