Where Banks Get Their Money
On Monday, I wrote about the differences in the deposits at the big four U.S. money centers: Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC) and Citibank (C). Today we'll consider the money these same institutions can access the Federal Reserve in order to meet requirements for reserves as set forth by Regulation D.
Since the financial crisis of 2008, the relationship the money centers have with the Federal Reserve has become very complex. Here is my take on the most basic and normal operating interaction of lending money to the Fed and borrowing money from it....463 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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