The FDIC should rescind its brokered deposits proposal, CSBS said in a comment letter today. The proposal would needlessly disrupt an important source of bank funding and cause other complications with no clear justification.

“The brokered deposits proposal fails to meet the rigorous, fact-based, and data-driven rulemaking standard stakeholders deserve,” said CSBS President and CEO Brandon Milhorn. “This proposal takes us a decade or more into the past and does not reflect the complicated funding environment facing banks today. Any future proposals should reflect these modern realities.”