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posted by martyb on Tuesday June 15 2021, @07:30PM   Printer-friendly
from the I'll-take-it! dept.

Banks to Companies: No More Deposits, Please:

U.S. companies are holding on to billions of dollars in cash. Their banks aren’t sure what to do with it.

When the coronavirus pandemic hit last year, corporate executives rushed to raise money. Banks have been holding that cash ever since, and because companies are reluctant to borrow from them, they can’t turn it into income-generating loans. That has weighed on banks’ profit margins, and some have started pushing corporate customers to spend the cash on their businesses or move it elsewhere.

Bankers say they thought the improving economy would reduce companies’ desire for holding cash, but deposit inflows have continued in recent weeks. Chief financial officers and treasurers, many still wary of the pandemic’s impact, say they aren’t ready for big changes, even if they earn little or nothing on their deposits.

[...] Top of mind for many big banks is a rule requiring them to hold capital equivalent to at least 3% of all assets. Worried about the rule’s impact during the pandemic, the Fed changed the calculation in 2020 to ignore deposits the banks held at the central bank, but ended that break this March. Since then, some banks have warned the growing deposits could force them to raise more capital, or say no to deposits.

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  • (Score: -1, Spam) by Anonymous Coward on Tuesday June 15 2021, @08:10PM

    by Anonymous Coward on Tuesday June 15 2021, @08:10PM (#1145650)

    Banks and industry are run by Jews and Jews collude. In America, auto insurance is required in 48 states. In states where insurance is required, you will hear commercials about switching auto insurance to save money. Well, guess what: The best offer you're gonna get is that same damn offer you're getting with your current insurance company. And auto insurance costs will rise year after year regardless of your driving history.

    Jewish greed is to blame, but to their credit driving will indeed become a lot more dangerous in the near future thanks to all the illegals they're bringing in. We're already seeing a huge uptick in Mexican-related driving infractions such as DUI, unlicensed driving, uninsured driving, hit-and-runs, and generally driving like they're in China or Vietnam.

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