The Fed claims US banks are in good shape, but if the banks are in such good shape based solely on their large amount of reserves at the Fed, then why…
On Thursday, June 25th, 2020 the Fed released the results of a bank stress test.
The Fed claims that US banks are in good shape, but ordered share buybacks stopped, a cap on bank dividends and to focus on building up more reserves.
But if the banks are in such good shape based solely on their large amount of reserves at the Fed then why were reserve requirement ratios (RRR) lowered down to zero by the Fed months ago? This is normally not done with healthy banks. This is normally done to try to save banks from collapsing like in 2008.
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