The zero interest deposit lifeline

30 November 2023Banksdeposits, Federal Deposit Insurance CorporationNick Dunbar

How zero interest-bearing deposits are protecting Bank of America from its underwater securities portfolio

Money funds ride the QT wave

19 October 2023Funds, Risk Commentarycash, deposits, Federal Reserve, government bonds, money market fundsNick Dunbar

The seven biggest money market funds used the Fed’s overnight repo facility to help boost their assets by 50% in just 18 months, while bank deposits have plunged. Now, with quantitative tightening, their strategy is changing.

Bank leverage and the lessons of the crisis

19 March 2013Articles, BanksAccounting, Cyprus, deposits, leverage ratiosNick Dunbar

"The final banking crisis, which terminated in the banking holiday early in March 1933" - So begins a dark passage in Milton Friedman and Anna Schwartz's Monetary History of the United States, which last Friday arose from ancient slumbers in the eastern Mediterranean. The turmoil sparked by the proposed tax on Cyprus bank depositors makes…