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US banks braced for large deposit outflows
CNBC/Financial Times ^
| 31 Jul 2014
| Tracy Alloway and Camilla Hall
Posted on 08/04/2014 5:57:27 PM PDT by Lorianne
US banks are steeling themselves for the possibility of losing as much as $1tn in deposits as the Federal Reserve reverses its emergency economic policies and raises interest rates.
JPMorgan Chase, the biggest US bank by deposits, has estimated that money funds may withdraw $100bn in deposits in the second half of next year as the Fed uses a new tool to help wind down its asset purchase programme and normalise rates.
Other banks including Citigroup, Bank of New York Mellon and PNC Financial Services have also said they are trying to gauge the potential effect of the Fed's exit on institutional or retail depositors who might choose to switch to higher interest accounts or investments.
(Excerpt) Read more at cnbc.com ...
TOPICS: Business/Economy
KEYWORDS: bankdeposits; fed; interestrates
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1
posted on
08/04/2014 5:57:27 PM PDT
by
Lorianne
To: Lorianne
When people get almost zero interest on their money, they will look for another place to put their money.
At the rate banks are paying, you are almost better putting your money in coffee cans and bury it in the back yard. At least your back yard will not go bankrupt.
2
posted on
08/04/2014 6:00:51 PM PDT
by
CIB-173RDABN
(I do not doubt that our climate changes. I only doubt that anything man does has any effect.)
To: Lorianne
How will the banks ever survive if they don’t get to use savers’ money for free?
3
posted on
08/04/2014 6:08:04 PM PDT
by
grania
To: grania
They don’t need our money. They get 800 billion Bernanke/Yellen Bucks to play with every year....
4
posted on
08/04/2014 6:12:00 PM PDT
by
Kozak
("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
To: Kozak
And they don’t have to pay it back.
5
posted on
08/04/2014 6:16:34 PM PDT
by
alpo
(What would Selco do?)
To: CIB-173RDABN
Here in Maine we are seeing relatively wealthy people coming up to buy pieces of land. Twenty to a hundred acre pieces.
6
posted on
08/04/2014 6:32:33 PM PDT
by
maine yankee
(I got my Governor at 'Marden's')
To: Lorianne
The Federal Reserve is like a gigantic monster movie sized bloated tick full of Lyme disease sucking the life out of America
7
posted on
08/04/2014 6:36:48 PM PDT
by
KTM rider
To: maine yankee
Here in Maine we are seeing relatively wealthy people coming up to buy pieces of land. Twenty to a hundred acre pieces.Should be funny watching them try to take possession when the SHTF.
8
posted on
08/04/2014 6:53:06 PM PDT
by
Stentor
(Maybe the Goldman Sachs thing is just a coincidence. /S)
To: Lorianne
Where did these co-authors go to school?
“deposit outflow”???
Ladies!
They’re called WITHDRAWALS!!!!
9
posted on
08/04/2014 7:12:33 PM PDT
by
G Larry
(Which of Obama's policies do you think I'd support if he were white?)
To: G Larry
10
posted on
08/04/2014 7:15:29 PM PDT
by
GeronL
(Vote for Conservatives not for Republicans)
To: maine yankee
Here in Maine we are seeing relatively wealthy people coming up to buy pieces of land. Twenty to a hundred acre pieces. Wealthy people have historically survived economic collapses by investing in land, gold and art.
11
posted on
08/04/2014 7:25:21 PM PDT
by
SVTCobra03
(You can never have enough friends, horsepower or ammunition.)
To: Stentor
Should be funny watching them try to take possession when the SHTF. Maybe they plan to build prepper bunkers before the SHTF.
12
posted on
08/04/2014 7:27:10 PM PDT
by
SVTCobra03
(You can never have enough friends, horsepower or ammunition.)
To: Lorianne
Just what we need: a new tool. As if the current tools haven't caused havoc already.
From the article:
Banks also face the retreat of large institutional deposits as the Fed uses a new tool known as a "reverse repo facility," or RRP, to stage its retreat. The RRP effectively allows non-banks such as money funds to have reserve accounts at the Fed.
Huh? To what end?
Why does everything the Fed does have the sound and feel of smoke and mirrors? Who thinks up this stuff? Denver pot heads?
13
posted on
08/04/2014 7:27:47 PM PDT
by
upchuck
(It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care.)
To: CIB-173RDABN
Maybe I’m missing something, but I think if interest rates go up, people will put their $$ back in the bank. But to do that, they would take it out of the Stock market (which, I suspect, is why they are really panicking).
14
posted on
08/04/2014 7:36:51 PM PDT
by
rbg81
To: grania
thats not the way banks work
15
posted on
08/04/2014 7:40:48 PM PDT
by
eyeamok
To: Lorianne
Are the Obamanites getting ready to toss the economy into the crapper because
2014 will be their bad election year? They'll get to blame it on the Repubs.
It's going to happen anyway but being forced will make it worse.
16
posted on
08/04/2014 7:42:37 PM PDT
by
MaxMax
(Pay Attention and you'll be pissed off too! FIRE BOEHNER, NOW!)
To: maine yankee
"Here in Maine we are seeing relatively wealthy people coming up to buy pieces of land. Twenty to a hundred acre pieces."
They're retarded then. With the uglier parts of the default process ahead, real estate is going to drop like a rock and stay that way for decades. Such people, on average, are also not likely to do any work to make good use of vacant land.
17
posted on
08/04/2014 9:04:37 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
To: familyop
But they could hire people to make good use of the land. We could be seeing a return to sharecropping.
Owning land is still a better deal than holding worthless paper or certificates. But I agree, you have to do something productive with the land, not just hold it.
18
posted on
08/05/2014 3:50:57 AM PDT
by
Lorianne
(fedgov, taxporkmoney)
To: Stentor
They are going to Maine to get out of the riots
19
posted on
08/05/2014 3:56:28 AM PDT
by
bert
((K.E.; N.P.; GOPc.;+12 ..... Obama is public enemy #1)
To: SVTCobra03
Maybe they plan to build prepper bunkers before the SHTF.I know that's the plan. Best build some bridges with the locals too.
20
posted on
08/05/2014 7:24:32 AM PDT
by
Stentor
(Maybe the Goldman Sachs thing is just a coincidence. /S)
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