In our continuing search for the best insight and commentary from around the web, GlobeSt.com is pleased to work with industry veteran and innovator Ethan Penner. This is a synopsis of his recent blog post, "Bank Confusion," which can be read in its entirety here.

What exactly are “Excess Reserves”? In his most recent blog post, Ethan Penner explores this question and tries to piece together the facts behind the Fed's potential decision on banks' $2.5 trillion in excess reserves.

Also discussed in the post:

  • The history of excess reserves after 2008.
  • How the 0.25% interest rate paid by the Fed brings into question the reserves' ownership.
  • The relation between the $2.5 trillion figure and the combined equity in the banking system.


To read the entire post, “Bank Confusion,” click here. For more posts from Ethan Penner, visit his blog by clicking here.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Geoffery Metz

Geoffery Metz is the content manager for ALM's GlobeSt.com, Credit Union Times and Treasury & Risk. Before joining ALM, he spent several years overseeing the newsroom at the financial wire service Business Wire, with special focus on multimedia presentation for the web.

National