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Deposits don't need to have interest paid. It's entirely possible for the money to simply sit there and not be invested in anything.
by kayamon 4y ago
Deposits don't need to have interest paid. It's entirely possible for the money to simply sit there and not be invested in anything.
- semi_cityplan 4y agoFour questions - where does a bank store cash? What is the IORB and what are its underlying assumptions? What is the overhead cost in banking? What is the cost of ACH and a wire? I don’t contend you can just have money sit there. I also don’t contend that it was stupid in hindsight to be this levered to duration. But there is an overhead cost in banking.