Re:Bad property debt exceeds reserves at largest US banks
by JumpCrisscross on Tuesday February 20, 2024 @09:33AM
(#39441790)
> Federal Reserve is paying 5% interest on $7 trillion of reserves held by banks
This was sanctioned by the Congress in 2008. And the banks could earn more in the interbank market. That’s why the Fed pays that interest: to keep those excess reserves out of the market.
This was sanctioned by the Congress in 2008. And the banks could earn more in the interbank market. That’s why the Fed pays that interest: to keep those excess reserves out of the market.