News for hackers. Stuff that matters.

A comment on Europeans drain billions from banks, fed up with shrinking savings. Parent comment

Re:Europeans drain billions from banks, fed up with shrinkin... by SilasX on Thursday May 04, 2023 @05:53PM (#35822610)
Merely substituting one low-risk instrument for another doesn't seem like a meaningful difference in this context.

Coincidentally, just two days ago I commented on the distinction to someone suggesting this kind of service: https://news.ycombinator.com/item?id=35790913

[ Parent | on HN ]
Re:Europeans drain billions from banks, fed up with shrinkin... by prottog on Thursday May 04, 2023 @08:52PM (#35824063)
There's one critical difference, which is that only chartered banks within the Federal Reserve system can take advantage of the federal funds rate, whereas anyone (including individuals) can buy T-bills.

The Fed, for various reasons, implicitly disallow this type of narrow bank. Several people have tried but the Fed always denied their application to join the system.

[ Parent | on HN ]
Re:Europeans drain billions from banks, fed up with shrinkin... by SilasX on Thursday May 04, 2023 @09:39PM (#35824329)
Aren’t they basically the same rate?
[ Parent | on HN ]