Bank reserves category goes negative

Bank reserves category goes negative
Fed: We are concerned but not alarmed
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Posted: February 18, 2008
4:16 pm Eastern

By Jerome R. Corsi
© 2008 WorldNetDaily

A new report from the Federal Reserve has confirmed the non-borrowed reserves of U.S. banks plummeted to a negative $18 billion at a recent accounting, reflecting an apparently worsening situation from the negative $8.8 billion reported at the end of January.

The numbers appeared particularly alarming in that the Fed, going back to1959, never before had reported that the non-borrowed reserves of depository institutions had been in the red.

But experts said the assumption bank assets had deteriorated so badly that financial institutions would be bankrupt if the Fed did not provide billions in liquidity to prop up bank balance sheets is alarmist.

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