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Last Time Big Banks Did This, We Had to Bail Them Out… – Investment Watch

Last Time Big Banks Did This, We Had to Bail Them Out… – Investment Watch
investmentwatchblog.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentwatchblog.com Daily Mail and Mail on Sunday newspapers.

Fed Tricks Markets with Trillion-Dollar Clandestine Tightening – Investment Watch

While the Fed’s current tightening is not exactly a well-kept secret, stock and bond markets seem willing to ignore what the Fed’s left hand is taking away as the right hand is giving. Reverse repurchase agreements, which I have been tracking here, have exploded to a trillion dollars in money that the Fed is sucking out of the financial system. According to John Mason at  Seeking Alpha, total reverse repos on the Fed’s balance sheet actually just hit $1.26 trillion this past week: Factors Affecting Reserve Balances of Depository institutions and Condition Statement of Federal Reserve Banks) had increased by $847.0 billion. This past week, the Fed added an additional $205.0 billion more in reverse repos to the account, 

Federal Reserve Adopts Amendments to Regulation D | Weiner Brodsky Kider PC

To embed, copy and paste the code into your website or blog: On June 4, 2021, the Federal Register published the Board of Governors of the Federal Reserve System’s (“Board”) adoption of amendments to Regulation D (Reserve Requirements of Depository Institutions). These amendments, among other things, eliminate references to certain rates, in particular the “interest on required reserves” rate and the “interest on excess reserves” rate; these are replaced with a reference to a single “interest on reserve balances” rate. Additionally, with respect to balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks, the amendments simplify the formula used to calculate the amount of interest paid on such balances.  

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