> lower interest rates on accounts... These days, banks need to be competitive with Treasury rates to get large deposits from informed investors. Anyone with a

> lower interest rates on accounts... These days, banks need to be competitive with Treasury rates to get large deposits from informed investors. Anyone with a brokerage account can get a 5% interest rate today on short-term Treasury securities (risk-free if held to maturity, and exempt from state/local income tax). So if banks start lowering rates on deposits, they may have a shortage of money for lending.