Federal Deposit Insurance Corporation approves deposit insurance for proposed Edward Jones Bank as a Utah-chartered industrial bank

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved a deposit insurance application from the Jones Financial Companies, L.L.L.P. to establish Edward Jones Bank as a Utah-chartered industrial bank. The proposed bank would focus on providing securities-based loans nationwide, funded by sweep deposits from existing clients of Edward D. Jones & Co., L.P. The FDIC evaluated the application against seven statutory factors, including the institution’s financial condition, capital adequacy, earnings prospects, management fitness, risk to the Deposit Insurance Fund, community convenience and needs, and consistency of corporate powers with the purposes of the Federal Deposit Insurance Act. Approval is subject to conditions and written agreements, including a requirement for Edward Jones Bank to maintain a minimum nine percent tier 1 leverage ratio and for the Jones Financial Companies and two of its subsidiaries to support the bank’s capital and liquidity positions. The approval order will expire if Edward Jones Bank is not established within 12 months, unless the FDIC extends it.