Overpaid banking executives need to keep the pay coming in, so… now they’re saying not only won’t you earn any interest on what you deposit, but… they’ll very possibly start charging you to keep your money.
Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.
Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.
“Right now you can at least break even from a revenue perspective,” said one executive, adding that a rate cut by the Fed “would turn it into negative revenue – banks would be disincentivised to take deposits and potentially charge for them.”
Yet another outcome of allowing foreign powers to control your financial system. End… the… Fed!!
Tied to the Financial Times story just above… not only are banks talking about charging you for holding your money (rather than paying interest) but they’re also plotting and planning how to make sure you can’t withdraw your money.
Fed’s Tarullo details plans to counter bank runs”
Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday.
“There is a need to supplement prudential bank regulation with a third set of policy options in the form of regulatory tools that can be applied on a market-wide basis,” Tarullo said at a conference on shadow banking.
You can’t make this stuff up. The elite in America are like an abusive spouse… the beatings upon the People will continue, until we finally decide we’ve had enough, and hit back.