You would think that the Fed would welcome narrow banks with open arms. You would be wrong. The latest chapter in the Fed’s determined effort to quash The Narrow Bank…
CONTINUE READINGThe Federal Reserve is pushing back against a new private bank that is suing the central bank for access to its services.
CONTINUE READINGThe Federal Reserve Board on Wednesday invited public comment on whether it should propose amendments to its Regulation D (Reserve Requirements of Depository Institutions) to lower the rate of interest…
CONTINUE READINGThe financial asset most widely held by U.S. households – bank deposits – is earning a miserly interest rate, far below competitive market rates…
CONTINUE READINGCompetition in banking deposit markets is weak but can be strengthened. Because of the weak competition in deposit markets, the Federal Reserve, surprisingly, began competing against banks for the funds…
CONTINUE READING“If you live in Connecticut, there’s a new bank in town whose only business goal is to pay its depositors a rate very close to the Federal Reserve’s IOER (interest on excess…
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