Banks Urge Customers in U.S. to Take Cash Elsewhere or Face Fees
Some argue that while it is a good policy on its face, the rule potentially magnifies problems in a recession by encouraging banks to hoard high-quality assets, potentially paralyzing markets for these assets such as Treasury securities and some corporate bonds.
Stop making us hoard your cash for you! Dig your own holes! Bury it closer to home! There's only so much cash we can stuff in our digital vaults!
Overall, about $4 trillion in deposits at banks in the U.S. were uninsured, covering more than 3.5 million accounts, according to Federal Deposit Insurance Corp. data.
Big holes! Big frickin' holes! Look, do we need to come out there and dig them for you? We'll do whatever it takes! Your massive and unprecedented uninsured deposits scare the heck out of us!
We've done all we can at our end! We already pay you 0.8% less per year on a 5-year jumbo CD than a 5-year treasury yields! Why won't you just go away?
Click to enlarge.
Source Data:
St. Louis Fed: Custom Chart
Maybe it's just me, but this does not look the type of environment where banks will soon be raising interest rates to attract new deposits. Just a guess.
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