loans create deposits Archive

Geithner- We’re going to try to get the biggest deal possible

Bill’s blog, below, as always, is well worth a read. And note today’s news, where, of all things, the Democrats are trying to position themselves as larger deficit cutters than the Republicans: “We’re going to try to get the biggest deal possible, a deal that’s best for the economy, not just in ...Read More

Small banks being crushed by Fed’s game of musical chairs

Small banks, already penalized with a higher cost of funds than the large banks (link) have more recently been forced to contract due to ‘wholesale funding’ restrictions being imposed by the regulators. Bank regulators distinguish between what they call ‘retail’ and ‘wholesale’ funding, and have set limits of small banks for ‘wholesale’ ...Read More