Foreign firms have received nearly half of the $9.8 billion in interest the Fed has paid banks since the beginning of last year for the money, called reserves, they deposit at the U.S. central bank according to an analysis of Fed data by The Wall Street Journal. Those lenders control only about 17% of all bank assets in the U.S.
Moreover, the Fed’s plans for raising interest rates make it likely banks will see those payments grow in coming years.
Hmm, we almost feel like we should bring up the dreaded “P” word considering the bolded sentence is a recap of what we said in February of 2013 in “How The Fed Is Handing Over Billions In “Profits” To Foreign Banks Each Year.” That’s ok, though: imitation, flattery and all that…
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