[fhayek]

While it may seem counterintuitive, having too many deposits may not be such a great thing. I mean, just because you have more money to lend/invest does not mean there are more credit worthy people to lend it to. You have to start loosening your standards just to try to maintain decent returns.

The eternal question. What could go wrong?

[proxy_user]

They simply won’t pay any interest on these deposits, and buy 3-month Treasuries at 4.5%. They can make plenty of money that way.