JP Morgan Chase & Co (JPM)

[BullNBear52]

*Including certain checking with interest (NOW) accounts.

Now accounts are covered by Federal Reserve Regulation D, that limits withdrawals on certain types of FDIC-insured accounts.

Under the FDIC Transaction Account Guarantee Program people could walk into a bank and demand their money in full on a NOW account (negotiable order of withdrawal), which was only allowed for Demand deposit accounts DDAs.

Now accounts under reg D always had a 7 day waiting period tied to them for people to withdraw their money.

This was enacted years ago to prevent runs on banks with customers who had interest bearing accounts.

Nothing changes as far as insurance coverage is concerned. The bank can ask you to wait for your money.

All the major banks are reinstituting the rules under reg D.

It also affects how they account for reserve requiements on the two different types of accounts.



Federal Reserve Regulation D is not a new regulation. It was part of the International Banking Act of 1978.Regulation D imposes uniform reserve requirements on all depository institutions with transaction accounts or nonpersonal
time deposits, defines such deposits, and requires reports to the Federal Reserve. All depository institutions,
including commercial banks, savings banks, savings and loan associations, credit unions, and agencies or branches
of foreign banks located in the United States, are subject to reserve requirements.

What accounts do Regulation D affect?
The Federal Reserve Board’s Regulation D defines the types and number of transactions that can be performed on
non-transaction accounts. This includes all Share and Money Market Accounts, which are comprise of:
?? Regular Savings Accounts
?? Money Management Accounts
?? Club Accounts
?? CDs

What are the limitations of Regulation D?
During any calendar month or statement cycle, you may not make more than six withdrawals or transfers from your
Share or Money Management Accounts to another OCU account of yours or to a third party by means of a preauthorized
or automatic transfer or telephonic order or instruction.