The article seems to imply only a handful of banks get that 0% rate. I don't know if that's correct.
It does put a bit of a different complexion on it if it applies only to overnight rates though. Of course, one could argue that daily churn doesn't actually cost the bank anything; they just have to make the same transaction 365 times a year.
$45 billion annual profit from the Fed isn't to be sneezed at. Unfortunately it's a drop in the bucket of current spending.
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It does put a bit of a different complexion on it if it applies only to overnight rates though. Of course, one could argue that daily churn doesn't actually cost the bank anything; they just have to make the same transaction 365 times a year.
$45 billion annual profit from the Fed isn't to be sneezed at. Unfortunately it's a drop in the bucket of current spending.