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28 December 2009


Dave C

Check out American Banking News. Fed wants to set up an interest earning deposit program for banks only to deposit any excess funds they have on hand. Imagine a TARP recipient bank depositing funds with the Fed to allow them to earn interest and thereby reduce the effective interest rate of their TARP loan(s).

Article here: http://www.americanbankingnews.com/2009/12/28/federal-reserve-considers-term-deposits-to-help-reign-in-excess-bank-reserves/

Dixon Cruickshank

Better than loaning it to a potenial default

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