Posted on 11/24/2013 8:57:51 PM PST by blam
Banks Warn Fed They May Have To Start Charging Depositors
Tyler Durden
11/24/2013 15:24 -0500
The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed's comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow once QE entered its terminal phase (for however briefly before the plunge in the S&P led to the Untaper).
After all, the Fed's policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset "tightening financial conditions", right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors.
(snip)
(Excerpt) Read more at zerohedge.com ...
:}Wait until Hillary gets there she’s gonna charge for air.
I remember Japan in this predicament. Did the Japanese banks do this?
I do not know.
Sure, you should pay a bank to borrow your money from you. Oh, and by the while you’re at it, look up who legally owns the money you deposit into your account.
Hello mattress and coffee cans
The Democrats have a death wish.
the garden makes a better bank and ATM
From what I’ve read, cash will be ‘illegal’ Dec 18.
Well that seems like perfectly normal and unremarkable banking activity. Move along people. Nothing to see here.
They did, however, charge for money transfers, deposits of checks (a RARELY used form of payment), ATM transactions after hours and everything else they could get away with.
Can you say “Credit Union”?
Thanks.
It’s just a friendly empty threat between lovers. The banks are telling the money printers they will turn around and screw the depositors if they clamp down on the juice flow.
Heard of a man who, when asked how he became rich and successful, said “I subcontract my weaknesses.” Wish I could do this with money, but all the subcontractors seem like parrots.
I am debt-free, but not at ALL smart in the ways of money. I have a 401k and a modest pension but have no faith in either when I “retire”. Wish I could figure out how to get something out of that 401k before the House of Games folds.
And dynamite-proof gun safes bolted into concrete.
Can you say Bitcoin?
I find it almost comical that the MSM would report this while ignoring a much bigger story...Retirees are being hammered by 0% interest rates. Middle income American households are evaporating.
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