Forget Ebola - Here's Why US Banks Are Now Extremely Vulnerable

ZeroHedge.com ^ | Tyler Durden

[Toddsterpatriot]

The Federal Reserve has recently, where it never had before, started paying interest on banks’ reserves.

Yes. What does that have to do with your earlier confused claim?

When banks refused to make loans in the worst of this past recession, this was one source of income they could count on.

They had guaranteed bonds earning 2%-4%. The Fed bought them and they got excess reserves earning 0.25%.

I think they'd prefer 2%-4%.