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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.