They drew in brokered deposits up to the $100,000 limit of Federal insurance, drawing money away from healthier institutions.

These so-called "brokered deposits" poisoned the system.

It is possible for a bank to engage in business with no local deposits at all, all funds being brokered deposits.

The Federal Home Loan Bank Board, however, has seen fit to name brokered deposits as a scapegoat.

During Giannoulias' tenure, Broadway also increased its brokered deposits, which generally command high interest rates.

The move, an attempt to stop high-risk growth, is also seen as an effort to limit the use by banks of high-priced brokered deposits from institutional investors.

Limiting insurance to an individual would greatly reduce brokered deposits.

All deposit accounts, excluding certain brokered deposits, were transferred to Old National Bank.

The reason for preserving insured brokered deposits is more subtle.

The subcommittee also decided by voice vote today to permit the stronger banks to continue to provide deposit insurance for brokered deposits.