An investment firm with more than $2.2 trillion in assets under management has been awarded deposit insurance for a new industrial bank it has chartered in Salt Lake City, the federal bank deposit insurance agency said Friday.
According to the Federal Deposit Insurance Corp. (FDIC), Jones Financial Cos. (of Des Peres, Mo.) has chartered Edward Jones Bank. The new bank holds an industrial bank charter from the state of Utah.
In a release, the FDIC said the proposed business model for the new bank will be to provide securities-based loans nationwide funded by sweep deposits from existing clients of Edward D. Jones & Co., L.L.L.P., (Edward Jones) a subsidiary of the Jones Financial Cos.
“FDIC staff found that Edward Jones Bank satisfied the statutory factors for approval, subject to certain conditions and written agreements,” the FDIC said. “Among other conditions, Edward Jones Bank will be required to maintain a minimum 9% tier 1 leverage ratio. In addition, the Jones Financial Companies and two of its subsidiaries will be required to support the bank’s capital and liquidity positions.”
However, the FDIC said that its insurance approval dies if the new bank is not established within 12 months, unless the agency extends the approval.
The 104-year-old Edward Jones reportedly has 15,000 investment company branches nationwide and employs 55,000 persons. Its net income in 2024 was $1.98 billion on total revenues of $16.3 billion. It is, by AUM, one of the largest investment companies in the United States.
FDIC Approves the Deposit Insurance Application for Edward Jones Bank, Salt Lake City, Utah
Leave a Reply