In addition to what has been said previously, the bill also stipulates that starting from January 1 next year, savings banks participating in the Federal Deposit Insurance Program can provide customers with a new ats account.

The ATS account is an automatic transfer account. To say it is a new account is better to say it is an upgrade to the original three accounts. As mentioned earlier, the checking account, under the provisions of the 1933 Glass-Steagall Act, is

Savings banks are not allowed to pay interest on deposits in such accounts. They are only allowed to pay interest on short-term deposits and long-term deposits, two types of time deposit accounts.

The ats account is very interesting. It breaks down the barriers between checking accounts and short-term deposit accounts. That is, a sum of money can automatically jump between these two accounts repeatedly.

When a customer needs money, the corresponding money will be automatically transferred from the current deposit account to the checking account to complete the payment; the excess funds in the checking account will also be automatically transferred to the current deposit account, where they will begin to accumulate and generate interest.

To put it bluntly, this thing is actually similar to the current demand deposit in China in the future. You can use it if you want, and you can leave it to earn interest if you don’t use it!

From allowing the opening of ats accounts to the removal of the upper limit on deposit interest, Carter could smell a hint of the federal government's intention to allow savings banks to increase their savings capacity.

From the perspective of loosening business control, such as canceling or raising the state government's interest rate limit for a series of loans such as single residential loans and residential improvement loans, and even allowing savings banks to engage in commercial investment business that does not exceed 20% of their own assets, etc.

...

This series of measures to increase the business scope of savings banks seems to be trying to find ways for savings banks to quickly spend the funds they have just absorbed.

If the increase in storage capacity is to cooperate with the Federal Reserve's monetary contraction, then the increase in operating business...

Water is released at the same time and water is filled at the same time? Is this a primary school math problem?!

"The gentlemen in Washington want to send us to death again, but they are afraid that we will die too soon... If it's you... ugh..."

Goodman, who also followed Carter to see the end of the bill, felt a thunder in his mind. He touched the cigarette on Carter's table with trembling hands, lit it tremblingly, and sighed:

"It greatly increases our storage capacity, but also blocks our operating capacity. Washington is really good at inflation! Help them shrink their currency, and then let us destroy ourselves..."

"You are saying that the removal of the upper limit on deposit interest is to allow our peers to compete for the market, compete to increase deposit interest, attract people to deposit excess money in banks, and reduce circulation in the market. And then it limits what we can use

The way to make profit from this money is to force most of the cash to remain in our hands..."

Goodman's words were like a bright light in the dark night, and Carter quickly understood the logic behind them.

yes!

With the gradual lifting of the upper limit on deposit interest, in theory, as long as a bank has sufficient funds and is not afraid of losing money, its storage capacity will be improved almost without limit! To use an extreme example, I would open a deposit

The annual interest rate is 100%. When issues such as trust in payment are ignored, almost no one is unwilling to deposit money in their own bank.

But after absorbing a large amount of deposits, where should I spend them? In terms of the business scope of a traditional savings bank, the deposits it can absorb and the loans it lends are basically balanced. There are only so many people in one place, and residential buildings There are only so many houses for loans and all.

If a large amount of savings were collected at this time, residential loans would definitely not be able to be extended so much. Therefore, the operating licenses for other businesses were opened to increase the profitability of some savings banks to ensure their survival, but they were not released. In other words, Most of the cash deposits will still be in the hands of banks.

"That's right, especially when peers around us are raising deposit interest rates to attract savers to deposit. It's no longer just a matter of a certain bank saying it won't raise the deposit interest rate unless it does so."

"As long as they are not too far apart and their interest rates are much higher than yours, then which bank depositors will choose to deposit their deposits is a question that you can think of with your toes. Even if it is to prevent the outflow of funds from your own bank, even if you absorb The incoming funds cannot be spent at all, and many banks have no choice but to raise deposit interest rates...and then hold a large amount of money in their hands...just waiting for some day in the future, it is really unbearable, this thunder It exploded!"

Cruel! So cruel!

Goodman only felt an unusual bitterness when he inhaled the mellow and delicious cigarettes in the past. It seems that since last year, Carter has been saying that he firmly believes that the high inflation that has lasted for ten years will inevitably end in this period. be contained within a time period.

At that time, Goodman was still doubtful, but now, he completely believes it!

This move is a naked conspiracy! When the first bank with good asset status and ambition starts to raise deposit interest rates, this Pandora's box will be opened.

Just to survive, the other banks have to grit their teeth and keep up with the former. They have raised deposit interest rates and absorbed a large amount of deposits, but they cannot spend them. One day in the future, they will not be able to pay the high interest rates, causing banks to fail. Capital becomes lower and lower until bankruptcy.

But if you don’t increase the deposit interest rate, your deposits will be greatly reduced, directly leading to your financial bankruptcy!

One is to die early, and the other is to die later. In the real world, although there are always people shouting "die early, live early", in fact, "it is better to die than live" is the choice of most people. Maybe if we delay it, there can be a glimmer of hope What about the transfer?

Goodman believes that if he can see this problem, there must be someone among other bankers who can see it. But seeing it does not mean doing it...

Just like Pandora's Box in the story, even if you know it cannot be opened, there are always people who want to open it! The so-called demons actually come from human nature.

It is obviously extremely absurd to pin the hope of breaking the situation on praying to others, or hoping that the banking industry will collectively keep the deposit interest rate unchanged. But other than pinning the hope on this, the only way Goodman can think of to break the situation is ...

Big capital crushes!

Use sufficient reserves to resist this crisis!

The result of raising the deposit interest rate and saving a large amount of money is that everyone loses money together. Then it depends on who has more foundation and can bear it better!

Only after a number of banks have been killed and a number of banks crippled can the people who feel pain regain their composure. Only then can they truly sit down and negotiate a relatively unified deposit interest rate that is acceptable to everyone and reduce unfair competition and internal friction.

Speaking of capital, Goodman naturally looked at Carter:

"Carter, your ht company..."

"The progress of this matter has already started to advance. It can't be stopped at this time! Stopping at this time will cause the sunk cost to be too great. I won't be willing to do it!"

Rubbing his swollen temples, Carter, who was also aware of the crisis, naturally thought of HT Company immediately. This gold-eating beast was consuming a lot of his cash reserves...

In addition to being sad, Carter had to feel lucky. Fortunately, he did not choose the nationwide plan. If he had followed that plan, his cash reduction rate would have increased by at least 50%!

"Hey...I understand you. A company that invested tens of millions in the early stage should stop now...How about we give up the bank? In the future, we will focus on that catering company. I...I will go to Mr. Jinas

Study, or I can go undercover at McDonald's, go to that hamburger university and come back..."
Chapter completed!