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> Banks don’t control how long it takes to move money, the fed does. If the banks really wanted to lobby the government and change whatever laws or regulations
by spookthesunset 7y ago
> Banks don’t control how long it takes to move money, the fed does.
If the banks really wanted to lobby the government and change whatever laws or regulations keep them from offering instant, free transfers.... they'd have done so already.
The fact that the US doesn't have instant, free inter-bank transfers is 100% on the banks. In fact, I bet they lobby the shit out of the government to keep it slow and expensive.
- adrr 7y agoYou don't understand how the banking system works. Fed holds the balance of every bank. That is what is getting updated every night when you move money between banks. Banks want faster processing and settlement time because it de-risks them. There is less risk of check kiting and other scenarios where customer is spending money that doesn't exist. Bank listed in article is on the hook for $26 million because transfers and settlements aren't instant.