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Fact Sheet: The FDIC’s Proposal on Brokered Deposits Will Weaken Banks and Cost Taxpayers Money

The FDIC has issued a proposal that would make it easier for already-weak banks to accept “brokered deposits.” That’s an unstable form of bank funding that contributed to bank failures during the savings and loan crisis in the 1980s and again during the 2008 financial crisis. Not only does the proposal fail to offer any persuasive justification for these deregulatory measures, it also offers no credible evidence that the Proposal will create any benefits.