4 ms·
I don't understand why banks would give this bank their money. Shouldn't they be getting this same rate from the Fed? Something is left out.
by spectrum1234 8y ago
I don't understand why banks would give this bank their money. Shouldn't they be getting this same rate from the Fed? Something is left out.
- deleted 8y ago[deleted]
- dmurray 8y agoI think their target customers are not banks. The article says it would "take deposits from financial institutions" but this could mean insurance companies, pension funds, credit unions, securities exchanges, etc. Anyone who might have substantial cash reserves as an integral part of their business, but who does not actually have a banking license. Edit: from the Matt Levine piece linked further down the comments, the target customers are "money-market funds and foreign central banks".