Thursday, March 15, 2018

Senate voted 67 to 31 for Bank Reform

Now over to the House...

This from the article:
The bill would allow custody banks such as BNY Mellon and State Street Corp to exempt the customer deposits they place with central banks from a stringent capital calculation requirement.

Is this supposed to mean that it does not apply to banking firms such as JPM, C, BAC, etc?

Here is the language from the S.2155
Definition.—In this section, the term “custodial bank” means any depository institution holding company predominantly engaged in custody, safekeeping, and asset servicing activities, including any insured depository institution subsidiary of such a holding company.

I can't tell.... not being trained as a lawyer :p

I am assuming that the language of the bill would make it applicable to any banking firm that at least maintains custodial accounts in a subsidiary.

While imo the sentence from the article does not imply this.


Ralph Musgrave said...

So banks, having stuffed the pockets of politicians with $100 bills, are managing to get back to the "heads we win, tails the taxpayer loses" arrangement.

And they have to cheek to complain about welfare queens....:-)

Matt Franko said...

Ralph think of it as full reserve... iow now that reserves are not regulated, it won’t matter how much you have...