banking system?
From uncle Jimmy's site
US banks warn Fed interest cut could force them to charge depositors
By Tom Braithwaite and Stephen Foley in New York and Robin Harding in Washington
Article:
Leading US banks have warned that they could start charging companies and consumers for deposits if the US Federal Reserve cuts the interest it pays on bank reserves.
Depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households.
The warning by bank executives highlights the dangers of one strategy the Fed could use to offset an eventual “tapering” of the $85bn a month in asset purchases that have fuelled global financial markets for the last year.
Minutes of the Fed’s October meeting published last week showed it was heading towards a taper in the coming months – perhaps as soon as December – but wants to find a different way to add stimulus at the same time. “Most” officials thought a cut in the interest on bank reserves was an option worth considering.
Comment:
Only an incompetent business model would lead to banks losing money. Why would anyone use an incompetent service?
"We live in interesting times"
Good Luck to all!
