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Thread: US banks warn Fed interest cut could force them to charge depositors (negative rate!)

  1. #1
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    US banks warn Fed interest cut could force them to charge depositors (negative rate!)

    Leading US banks have warned that they could start charging companies and consumers for deposits if the US Federal Reserve cuts the interest it pays on bank reserves. Depositors already have to cope with near-zero interest rates, but paying just to ...FUQ U
    (sorry about the POS link URL, FT.com is behind a paywall that I can't bust for y'all)
    http://news.google.com/news/url?sr=1...10202190223923
    Quote Originally Posted by Nightmare View Post
    "Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday. "

    http://www.cnbc.com/id/101222045

    Deposit it and lose it. I see EU banks considering negative deposit rates to keep value in the market (churn and earn). Just as the media would have it, limping from crisis to crisis. The mattress is going to be the safest place and with a zero rate (better'n negative).
    Last edited by Nightmare; 11-24-2013 at 06:46 PM.
    I am responsible for my writing, not your understanding of it.

  2. #2
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    So what's the gov't going to do .. make us keep our money in the banks?

    No one said that banks are entitled to stay in business.

  3. #3
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    Post postprandial brandy

    Quote Originally Posted by davidmcbeth View Post
    So what's the gov't going to do .. make us keep our money in the banks? No one said that banks are entitled to stay in business.
    Let's open a private bank - United States Bank of Posturepedic for the demotic, and US Tempurpedic Bank for US wealthy retirees.

    Actions speak more loudly than words, banks are too big to fail - except, of course, USBP & USTB.

    Milady wife's and my first big purchase together was our $2K TempurPedic, and it is still great! Next was our coffee maker - Chemex. She's knitting just now in her granny-recliner next to me. Love is grand!
    Last edited by Nightmare; 11-24-2013 at 08:22 PM.
    I am responsible for my writing, not your understanding of it.

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