The FDIC has approved a final rule implementing its statutory authority to prohibit any person or organization from making misrepresentations about FDIC deposit insurance or misusing the FDIC’s name or logo.
“These practices not only harm those who are targeted with the false promise of deposit insurance, but, if left unchecked, could also undermine confidence in the FDIC, FDIC-insured banks and the U.S. banking system,” said FDIC Acting Chairman Martin Gruenberg.
In recent years, the FDIC has observed an increasing number of instances where individuals or entities have misused the FDIC’s name or logo or have made false or misleading representations about deposit insurance. To provide transparency into how the FDIC will address these and similar concerns, the final rule clarifies the FDIC’s procedures for identifying, investigating, and where necessary, taking formal and informal enforcement actions against individuals or entities to address violations.
The final rule will take effect 30 days after publication in the Federal Register.