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So I guess for them the only option for their short term redemption buffer is to keep money in the 4 systemically important banks. There are no other options. R
by lifty 4y ago
So I guess for them the only option for their short term redemption buffer is to keep money in the 4 systemically important banks. There are no other options. Relevant note, FED won't approve full reserve banks (several tried) as they might suck too many deposits out of the rest of the banks, posing a risk to the other banks.