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Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

Updated: 3-20-2023: Silicon Valley Bank’s collapse has caused savers to seek out alternatives, but the shift poses risks to the financial system and the wider economy. Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

After the most tumultuous month since the 2008 financial crisis, banks are finding themselves in an impossible position.

Keeping interest rates on deposits near zero is becoming increasingly untenable, with the collapse of Silicon Valley Bank, Signature Bank and Silvergate Capital Corp. putting savers on high alert for better and safer alternatives.



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But raising rates enough to compete with money-market funds is also a nonstarter that would crush profit margins and potentially roil stock prices.

It’s forcing a rethink about the traditional role lenders have had in the US financial system and the economy — and whether there are just too many of them.

The turmoil has underscored that there are other places people and companies can park their spare cash and get a better interest rate.

Over the past three weeks, what had been a slow flight from low-yielding savings accounts has become a turbocharged sprint to higher-earning alternatives. And smaller banks are feeling the pain much more acutely than their giant peers.

Deposits at such lenders slumped $120 billion in the week ended March 15 while those for the 25 largest firms rose almost $67 billion, Federal Reserve data showed.

Outflows at US lenders more broadly continued the following week, with $125.7 billion withdrawn, though smaller banks posted a slight increase.

For more than a decade, banks had been able to pay rock-bottom rates to depositors. When the Fed slashed interest rates in the financial crisis, it opened a low-rates era that allowed banks to borrow cheaply and earn handsome profits from lending.

Now, the ground is shifting. The Fed has been raising its borrowing benchmark at a rapid clip over the past year in a bid to tamp down inflation — but banks have been slow to boost the rates they offer to customers, fearing what it will mean for their margins.

“The bottom line is, deposits were really taken for granted for a very, very long time because of the zero interest rate environment, and now that’s completely changed,” said Joseph Plevelich, senior research analyst at Pekin Hardy Strauss Wealth Management.

Even before the rapid-fire bank collapses, lenders had been confronting strains created by the Fed’s aggressive rate hikes. Lower-yielding investments and loans are dragging down bank profitability even as it becomes more expensive to borrow money to fund further lending.

Money-market funds, on the other hand, have been much more nimble in passing on the Fed’s rate hikes. There is now a record $5.2 trillion piled up in them and some predict that the flow from banks to funds can go even further.

Money funds park cash in short-term instruments, such as Treasury bills or repurchase agreements, and pass on what they earn to investors.

Though the immediate anxiety about more bank failures has eased, investors have continued to pump cash into money funds, pushing some $66 billion into US money funds in the week ending March 29, according to the Investment Company Institute.

Less Lending

The move from bank accounts to money funds and other instruments is likely to put more cash in the pockets of long-suffering savers, but there is concern that a dearth of deposits will leave the US with a smaller number of community and regional banks who have less money to lend — and that in turn could hold back growth and worsen inequality.

Many banks are barely trying to compete with money-market funds to lure customers back. They’re either unwilling or unable to raise deposit rates as they’re still suffering from losses from investments made in lower-yielding assets before the Fed began raising rates.

Some banks that dangled higher rates have collapsed: Signature and SVB offered among the highest deposit rates in the industry.

Even the nation’s smallest banks play a major role in the economy. A 2020 Federal Deposit Insurance Corp. report indicated community banks — institutions with $10 billion or less in assets — held 36% of small business loans, even though they accounted for only 15% of total loans within the sector.

Bank loans are a crucial source of funding for small businesses, which employ about 46% of Americans who work in the private sector and have generated nearly two-thirds of jobs created since 1995, according to the US Small Business Administration.

The prospect of widening wealth inequality — a trend that the Fed was hellbent on reversing as part of its 2020 framework change — looms large for economists including Krishnamurthy Subramanian, an executive director at the International Monetary Fund.

Community and regional banks are crucial lenders to individuals and small businesses far removed from the biggest, wealthiest US cities.

“The people who bank with them, who are not as well-to-do,” will be most affected by the struggles of smaller banks, said Subramanian, a former chief economic adviser to India’s government. “Large banks will not be the ones hit this time.”

Plugging The Gap

For now, the fallout from the deposit exodus has been contained. The Fed, along with the Federal Home Loan Banks, has plugged a big chunk of the funding gap.

And the FDIC’s decision to backstop previously uninsured deposits at SVB and Signature Bank has helped ease some savers’ concerns about the safety of banks.

However, some industry observers say those steps can only buy so much time, and that the flow of funds away from lenders will likely go on.

“Until the regulators or the government say in fact all deposits are insured, the implied insurance doesn’t really count,” said Joseph Mevorah, a senior managing director with Empire Valuation Consultants. “Over the course of the next few months, you’re going to see a steady trickle away from those banks.”

Mevorah started his career liquidating failed or failing thrifts during the savings and loan crisis, financial panic sparked by aggressive interest rate hikes that led to a federal bailout for the industry and an overhaul of banking regulation.

A steady drawdown of deposits isn’t the only challenge facing banks.

Since the Fed’s fight against inflation began, banks have watched the value of their substantial bond holdings erode, as debt bought when rates were lower is worth less as rates climb.

The same can be said of mortgages and other loans banks made when customers who were eager to lock-in low rates opted to borrow.

While accounting quirks have shielded banks from the worst impacts of those unrealized losses, banks are still facing significant friction that will erode profits in the short term and could do more damage down the road.

Margin Squeeze

It was clear even before the most recent crisis that some banks were leaking deposits, pushing them to lean more heavily on alternative funding sources, such as the FHLB system.

Some also responded by boosting the rates they offered on deposits in a bid to lure back savers, but even with that average rates remained well below what money funds and other venues were able to offer.

Jacking up interest rates on savings accounts and certificates of deposits can draw in cash, but it’s also likely to squeeze banks’ net interest margin, or NIM, a key measure of their financial health that compares how much they make from interest-bearing assets like loans against what they pay on interest-bearing liabilities like deposits.

“That earnings number will look way worse,” said S&P Global analyst Nathan Stovall. He said that could lead to consolidation if it pushes bank executives who were already contemplating a sale past the tipping point.

“You might’ve been willing to accept some margin compression. You might’ve been willing to accept a 5% decline in earnings,” said Stovall. “But are you willing to accept 10 or 15? I think that could push people over the edge.”


Updated: 3-30-2023

Why US Banks Are Hemorrhaging Deposits To Money Funds

Americans are changing where they park their cash, with money market funds becoming more popular than ever. The shift away from bank deposits and into these funds gathered pace in the last year as the Federal Reserve increased interest rates to fight inflation.

Many banks were slow to pass on those increases to customers, so the draw of higher money market yields has prompted many savers and companies to seek out alternatives.

The shift was turbocharged more recently by concerns about the safety of small and midsize US banks, sending the total amount in money funds to around $5.2 trillion.

If these banks keep losing deposits to money markets and their bigger banking peers, there’s a risk that they will dial back lending in a way that causes a larger economic slowdown than the central bank is trying to engineer.

1. What Happened To Deposits?

As the Fed started raising interest rates in 2022 and signaled its intention to tighten policy further, the market yields offered by various short-term instruments from Treasury bills to repurchase agreements climbed.

In turn, money funds, which put dollars to work in these kinds of securities, also raised the rates they offered to investors.

Banks passed on some of the rate benefits to depositors, but not all. Because firms were sitting on a mound of deposits from pandemic-era stimulus programs, they could afford to let that money flee for higher-yielding alternatives and instead keep rates low to shore up their margins.

That was fine for a while, but by late 2022 evidence emerged that some banks were starting to scratch around in funding markets to make up for deposit shortfalls.

That exodus accelerated this year as the failure of three banks and solvency concerns about others sent retail and corporate investors piling into money market funds.

2. What Are Money Market Funds?

Money market funds invest in a variety of short-term cash-like instruments. These include Treasury bills — US government securities that mature in a year or less — as well as repo agreements, a type of short-term lending secured by bonds that the borrower owns.

Some money funds also invest in short-term corporate IOUs known as commercial paper. Right now, though, a massive chunk of the total appears to be simply warehoused in the Fed’s overnight reverse repo facility rather than finding its way back into the economy.

3. What Has Made Them So Popular?

Money funds have long been a popular destination for companies and others to stick cash that they don’t need right now but might want to tap on short notice.

They got a big bump in popularity in early 2020 as pandemic-related cash infusions flooded the financial system, and took another significant leg up in the past few months as the rates offered by money funds outstripped those being provided on bank deposits.

4. Why Doesn’t Everyone Just Put Their Cash There?

Many savers stick with their banks out of inertia or complacency, but traditional bank accounts also have some advantages over money market accounts. Banks provide people with ready access to their money as well as associated conveniences like checking accounts and mortgages.

For customers willing to lock up their cash for periods of time, banks also offer certificates of deposit that pay a fixed rate of return, whereas money market yields move up and down.

On top of that, savings accounts are insured by the Federal Deposit Insurance Corp. — officially up to $250,000 per depositor, but in reality perhaps more after the collapse of Silicon Valley Bank prompted the agency to go beyond its normal limits.

Because of these advantages offered by banks, money funds need to offer a yield premium to lure people in.

5. How Risky Are Money Funds?

The cash that into US government money funds is invested either directly in Treasury securities, in instruments linked to similar assets like repo agreements, or in central bank facilities. But like any investment vehicle, there’s risk. Back in September 2008, the collapse of the Reserve Primary Fund — the oldest US money market fund — spurred a run on other funds.

A lot has changed since then, however, with the government undertaking several rounds of money-market rule changes aimed at protecting investors in times of crisis and making the financial system more resilient.

These included requirements for funds to invest in more liquid assets and tighten up their risk management.

The industry is even girding itself for the Securities and Exchange Commission to announce a third set of changes that have been debated since the pandemic.

6. What Happens If Banks Keep Ceding Cash To Money Funds?

If money funds continue to prove more attractive for savers than deposit accounts, banks will either need to lean on more expensive sources for funding, dial back their lending, or a combination of the two.

Small and midsize banks, which have lost the most deposits, have been among thee biggest drivers of loan growth in recent years, so anything that crimps them could have outsize knock-on effects for the economy.

Of course, the Fed is actually trying to engineer a certain amount of that as it uses tighter monetary policy to combat inflation. But a sudden rush of cash out of the banking system — in excess of what’s already been moved — risks increasing the odds that a so-called soft landing might morph into a deep recession.


Money-Market Fund Assets At Record $5.2 Trillion As Rates Beckon

* Balances Have Risen By More Than $300 Billion Through March 29
* Government Money-Funds Saw Assets Rise To $4.33 Trillion

The amount of money parked at money-market funds climbed to a fresh record in the past week as banking concerns continued to rock global markets and attractive rates lure investors.

Money-market funds have been scooping up cash recently, fueled in large part by depositors pulling their money away from US banks. Initially much of that flow was driven by more attractive rates, but concern about the steadiness of some smaller lenders helped turbocharge that this month.

About $66 billion poured into US money-market funds in the week to March 29, according to data from the Investment Company Institute. Total assets were $5.2 trillion versus $5.13 trillion in the week to March 22.

The week before, about $117.41 billion in net new money was placed in the funds. That came as fears about the state of the banking system fueled risk aversion globally and spurred demand for high-quality, liquid assets. Money-market funds got roughly $304 billion of cash in the three weeks to March 29.

The prior record for weekly inflows was $286 billion, reached in March 2020, based on ICI data that goes back to 2007. Back then, a ramp-up in concern over the economic fallout from the coronavirus pandemic sent investors running for havens in money-market funds.

In the week to March 29, government funds, which invest primarily in securities like Treasury bills, repurchase agreements and agency debt saw assets rise to $4.33 trillion, a $71.1 billion increase.

Prime funds, which tend to invest in higher-risk assets such as commercial paper, saw assets fall to $757.3 billion, an $8.1 billion decline.

Cash Stashed In Funds Instead Of Banks Fuels US Slump Risks

* More Than $5 Trillion Has Been Plowed Into Money-Market Funds
* Smaller Banks Are Bearing The Brunt Of The Exodus By Savers

Money-market mutual funds are proving an irresistible place for investors to park their cash right now instead of banks.

The amount squirreled away in them has surged to more than $5 trillion and that risks becoming a problem for the US economy if that grows too much and too quickly.

Encouraged by the higher rates that these funds have been able to offer — and their greater nimbleness in passing on benchmark increases by the Federal Reserve over the past year — savers have been shifting cash into them and out of traditional bank deposits.

That was happening even before the recent banking turmoil, but the trend has been supercharged amid the collapse of Silicon Valley Bank and other lenders.

“Depositors are noticing” the gap between what banks and money funds are offering in terms of interest rates, Barclays Plc money-market strategist Joseph Abate wrote in a note to clients. “We expect flows into money funds to grow by several hundred billion dollars, heating up bank deposit competition.”

An ongoing funding pinch for financial institutions risks having knock-on effects for banks’ willingness to lend, which in turn could weigh on the provision of loans to consumers and businesses.

Of course, a certain amount of that is what the Fed is actually trying to engineer as it uses tighter monetary policy to combat inflation.

But a sudden rush of cash out of the banking system — in excess of what’s already been witnessed — risks increasing the odds that a so-called soft landing might morph into a deep recession.

Assets in money funds have now reached a record $5.2 trillion, according to data from the Investment Company Institute, with more than $300 billion of that being added in the three weeks to March 29.

Money-market funds invest in a variety of cash-like instruments from Treasury bills to repurchase agreements, with a smaller subset also putting funds to work in short-term corporate IOUs.

Right now, though, a massive chunk of the total appears to be simply warehoused in Fed facilities rather than finding its way back into the economy.

Close to $2.3 trillion is stashed in the Fed’s reverse repo facility, which offers an annual rate of 4.80% for overnight cash and is primarily used by money-market funds.

The rate that facility offers is attractive compared to many short-term money-market instruments such as Treasury bills, and that’s helped keep usage consistently above $2 trillion since the middle of last year.

And because it’s being sidelined at the Fed, that’s essentially money that isn’t being put to any use — for now at least.

The rate on the Fed’s RRP, as it is commonly known, also outstrips by far what most banks are offering, with the average one-year certificate of deposit rate somewhere around 1.5% right now, according to data from the Federal Deposit Insurance Corp.

If money funds continue to prove more attractive for savers than deposits, the downward pressure on banks’ reserve levels may remain or even increase. Smaller US banks have seen deposits drop, raising concerns about a reduction in lending to businesses and households if the outflows continue.

Fed figures show that while the biggest 25 banks added some $120 billion in deposits in the week through March 15 — the period when SVB failed — smaller lenders lost $108 billion from their accounts.

Critically, it’s smaller banks that have been the biggest drivers of lending over the past few years. The largest banks have a combined $6.5 trillion of loans outstanding — compared to $4.5 trillion for the rest — but it is the smaller lenders that have grown lending more since 2020, according to Fed data.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Even before this month’s tumult, banks were already tightening lending standards to businesses and witnessing weaker demand for loans, according to the Fed’s January survey of senior loan officers.

That same report also showed that lending to households was either unchanged or tighter.

“This has been a direct byproduct of large-scale Fed rate hikes, and rapid tightening in lending standards has been historically consistent with sizable growth downturns and/or stress in financial markets,” Jason Daw, head of North American rates strategy at RBC Dominion Securities Inc., said in a note to clients.

Tighter financial conditions make the market more attuned to risks that the economy could slip into a recession and raises the odds that the Fed will start cutting rates sooner rather than later. Pricing of swaps linked to central bank meetings suggest more than half a percentage point of cuts are likely by the end of the year.

What’s worrisome is that continued uncertainty and inflows into money-market funds make a normal process more disorderly.

In the meantime, some have argued that the Fed needs to adjust the parameters on its reverse repo facility, either lowering the rate it pays or reducing the amount each counterparty can park at the Fed.

The Bank Policy Institute, an advocate for lenders, is one organization that’s been actively pushing for changes to the rate offered on reverse repo facility, which it says is causing damage.

Yet, even if the Fed did make those kind of tweaks, there’s no guarantee that the cash pushed out of the central bank would wind up in the accounts of the banks that need that cash the most.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Meanwhile, Treasury Secretary Janet Yellen, appearing on Thursday at a conference of business economists, spoke about some of the risks surrounding money funds themselves.

She said that “the financial stability risks posed by money market and open-end funds have not been sufficiently addressed” and noted that noted that mitigating vulnerabilities in nonbank financial intermediation is one of the top priorities of officials.

All this puts the banking system at a crossroads. Banks can aggressively boost the rate paid to depositors even though it will still lag money-market yields. They could tap funding avenues like the Federal Home Loan Bank system or tighten lending standards to reduce funding needs.

They could also realize losses by selling securities to support loan growth, but that would negatively affect their earnings and regulatory capital.

There’s also a risk that these outflows continue, especially as the Fed keeps rates elevated and marches on with the unwinding of its balance sheet.

“There isn’t a systemic banking issue as of this moment,” said Zachary Griffiths, senior fixed-income strategist at CreditSights Inc. “If we’re wrong and banks tighten their belts much more as deposits shift and the overall thinking about the ‘stickiness’ of deposits changes more holistically, then we could be in for a more pronounced economic downturn.”


Updated: 4-3-2023

Cash Exodus Shows Just How Much Quicker Funds Adapt To Fed Hikes

* Funds Historically More Nimble In Passing On Fed Rate Changes
* Total Size Of Us Money-Market Funds Has Topped $5 Trillion

The recent flood of cash from bank deposits to money-market vehicles has sharpened investors’ focus on just how much more nimble those funds are in passing on interest-rate changes by the Federal Reserve.

Over the past two decades, money funds have passed on around 88% of changes in central bank interest rates, compared with just 26% for rates on retail cash deposits — more than three times the amount — according to an blog post from the Federal Reserve Bank of New York.

And that dynamic, combined with lag effects, means that there’s scope for money funds to keep ballooning in size.

Updating a study that was originally conducted in 2019, the New York Fed researchers conclude that money-market vehicles have continued to respond with greater alacrity during the most recent cycle of central bank interest-rate increases.

As a result, they posit that the growth of the US money-market mutual fund industry is set to continue in the wake of the hikes implemented by the Fed during the past year.

“During the current tightening cycle, MMF yields have increased by 4.13 percentage points, in line with our previous estimate of the beta on MMF shares between 2002 and 2020,” a team of researchers, including Gara Afonos, wrote in a post Monday on the New York Fed’s Liberty Street Economics blog. “In contrast, deposit rates have remained flat.”


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

They noted that between April 2022 and January 2023 — which encompassed much of the Fed tightening — money fund assets increased to $4.62 trilllion from $4.31 trillion in April 2022.

The researchers judged that to be “relatively small” given that the Fed had increased its benchmark target by 4.25 percentage points by the end of January to a range of 4.25%-4.50%

That was “likely due to a lag with which monetary policy affects investor flows in MMFs,” the NY Fed staffers said in the blog.

“The recent monetary policy tightening, in fact, could lead to a further expansion of the MMF industry in the near future.”

The amount of cash parked in money funds has grown further since then following additional rate increases by the Fed — its benchmark range is now 4.75%-5.00% — and the banking turmoil that surrounded the collapse of Silicon Valley Bank and other lenders.

With fears around the prospects for smaller institutions prompting many to pull cash from bank accounts, total money fund assets have now ballooned to $5.2 trillion, according to data from the Investment Company Institute.

That includes more than $300 billion of net new funds in just three weeks.

Of course the speed at which money fund companies respond relative to banks to Fed rate increases is mirrored in reverse during periods of monetary easing.

That is something that traders are pricing in over the horizon, but before then the market suggests there will probably be at least one more hike to come — at the Fed’s next meeting.

Current pricing in swap markets shows a quarter-point hike in May is seen as more likely than not, while pointing to more than half a point of cuts by the end of 2023.

“The gap between the deposit and MMF betas increases the appeal of MMF shares relative to bank deposits when the Federal Reserve tightens its monetary policy and decreases their appeal when the Federal Reserve cuts rates,” the researchers said in the blog. “As a result, the size of the MMF industry tracks the monetary policy cycle, albeit with a lag.”


Updated: 4-5-2023

Investors Seen Pouring $1.5 Trillion More Into The Safest Money Funds, Barclays Says

* More Cash Set To Move Into Government-Only Money-Market Funds
* Search For Safety And Better Rates Are Key To Continuing Trend

The wave of cash plowing into the safest of money-market mutual funds has only just begun with as much as another $1.5 trillion set to enter over the next year, according to Barclays Plc.

Coffers of government-only money funds, which invest just in securities with virtually no credit risk such as Treasury bills and repurchase agreements, have already ballooned since fears of a banking-sector crisis erupted last month.

A continued exodus from banks and rotation out of prime funds, which can buy more risky debt, will only further fuel that trend as investors search for higher yields and greater safety, Barclays says.

“We expect money fund balances to increase sharply in the next year,” Barclays money-market strategist Joseph Abate wrote in a note to clients. “While it seems that the concerns about broader bank solvency are fading, they appear to have caught the attention of this deposit base. Institutional investors have noticed that they were not getting as much compensation for taking on unsecured bank risk by keeping bank deposits above the $250,000 insurance cap.”

The amount of money parked at all money-market funds climbed to a fresh record last month as banking concerns unsettled global markets and attractive rates lured investors.

Their cash pile jumped by roughly $304 billion in three weeks, bringing total assets to $5.2 trillion as of March 29, according to data from the Investment Company Institute. A fresh update from ICI will come out on Thursday.

Besides the exit from banks amid fears of further runs in the wake of the demise of Silicon Valley Bank and two other regional banks, investors have pulled cash from deposit accounts as increases in those rates have trailed yields for money funds, which have better adjusted to the Federal Reserve’s most aggressive hiking cycle since the Volcker era.

New York Fed researchers quantified that rate disparity and its effect on money flows this week in a blog post.

One potential destination favored by government-only funds is the Fed’s reverse repo facility. But whether fresh cash mostly finds its way to so-called RRPs will depend on the supply of attractive alternatives.

Money parked in RRPs last week jumped to its highest so far this year at $2.375 trillion, though has edged lower since.

Projections for money-fund inflows signal “heavy future inflows into the Fed’s RRP,” Abate wrote. “But just how much goes into the Fed’s program depends on the availability of alternatives like bills and private sector repo, as well the willingness of fund managers to extend their portfolio weighted average maturities.” Yet the path for RRP balances is uncertain and swings in usage could create other issues, he said.

“On-and-off swings in the use of the Fed’s RRP during QT caused by exogenous factors – like the supply of alternative assets and the effect of prime fund reform – could echo through overnight interest rates,” Abate said. “In turn, these rates could temporarily swing up and down, ‘self-correcting’ the reserves scarcity created by the RRP.”


Deposit Outflows Shine Light On Fed Program That Pays Money-Market Funds

Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Reverse repo offers interest on firms’ cash balances, but some analysts say flows add to bank-system stress.

Banks are under pressure from depositors’ embrace of money-market funds, pushing a popular Federal Reserve-sponsored financing program into the spotlight.

Money-market fund assets are increasing at a record clip. Much of that cash is making its way to the Fed’s overnight reverse repurchase facility, which borrows from money funds and other firms in exchange for securities such as Treasurys and then returns the money the next day.

The program, known on Wall Street as reverse repo, allows financial firms and others to earn interest on large cash balances. But some analysts contend it also is effectively draining funds from the banking system, where it otherwise could be invested or lent out.

As of Wednesday, more than $2.2 trillion sat in the Fed’s reverse repo facility, paying a 4.8% annualized rate. That is well above the rates on offer at most banks.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Some analysts are suggesting the Fed should change the terms of the facility to limit further bank distress. Any policy discussion is potentially complicated by factors including the Fed’s effort to raise interest rates to control inflation, and officials have indicated in the past that they prefer to allow market forces to work.

“Every day, firms are handing us over $2 trillion of liquidity they don’t need,” said Fed Governor Christopher Waller during a moderated discussion in January.

Bank deposits have fallen $363 billion to $17.3 trillion since the beginning of March, Fed data show. Assets in money-market funds have risen $304 billion to a record $5.2 trillion, according to Investment Company Institute data.

More than 40% of money-market fund assets are invested in the reverse repo facility, which the Fed created 10 years ago to lift interest rates with a banking sector that had been flooded with reserves.

Roughly $2 trillion or more has been parked there since mid-2022. Demand exploded in 2021, when the Fed’s aggressive stimulus during the Covid-19 pandemic sent a wave of deposits into the banking system.

Use of the Fed facility hasn’t changed significantly in the weeks since the early March failures of Silicon Valley Bank and Signature Bank, but some analysts said banking-sector stresses have made it harder to predict how the central bank’s relatively new tools will influence overnight lending markets.

“What’s different this time is the money-market funds aren’t really as good at recycling money back into the banking system,” said William Dudley, who was president of the Federal Reserve Bank of New York from 2009 to 2018.

Banks have been unwilling to hold extra reserves—or liquid, readily available cash—at the Fed because of a decision that regulators made last decade, Mr. Dudley said.

They chose to count those balances toward banks’ calculation of a key regulatory buffer known as the supplementary leverage ratio, he said.

Officials temporarily exempted reserves from the leverage ratio for a year from April 2020, as the pandemic put extreme stress on the financial system. Reverse repo demand began rising shortly after the one-year suspension of the rule ended.

The treatment of reserves in the leverage ratio “is a reason why some large banks in particular don’t want more reserves,” said Mr. Dudley.

To reduce the amount of cash sitting at the Fed each night, central bankers have a few options. One way would be to cut the rate paid to money funds, analysts said.

Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

“To reverse the giant sucking of the overnight reverse repo facility, all the Fed needs to do is lower the interest rate it pays,” said Bill Nelson, chief economist at the Bank Policy Institute—a Washington, D.C.-based trade group—and a former Fed staffer.

In June 2021, the Fed raised the overnight reverse repo rate by 0.05 percentage point. With interest rates near zero, money-market funds were struggling to cover their operating costs, putting a vital part of the financial system at risk. The rate also serves as a floor on short-term interest rates.

With rates well above zero, the Fed has the option to push the overnight reverse repo rate back down to the lower end of the federal-funds target range.

That would need to coincide with the Fed’s raising the rate it pays on bank reserves, according to Mr. Nelson—a move that could encourage money funds to lend to banks rather than the Fed. Interest on reserves is currently 4.9%.

Other analysts said it wouldn’t be appropriate for the Fed to reduce the interest rate on the reverse repo facility to provide relief to banks that have been slow to raise deposit rates.

The facility has been meeting its core objective of “providing highly effective control of overnight interest rates,” said Brian Sack, a former senior executive at the New York Fed who helped design the facility.

“I don’t think the Fed should be trying to force savers into bank deposits by making the alternatives less attractive. I don’t see reducing the reverse repo rate as an appropriate policy step.”

Greater competition among banks would tend to raise borrowing costs and hurt profits. That is a dilemma for bankers that was largely absent in the recovery from the 2008 financial crisis.

Overwhelmed with deposits following monetary stimulus, many banks have chosen not to pay customers higher rates, even when the Fed raised them.

“Banks are still losing deposits, but it’s mostly small potatoes relative to the roughly $17 trillion in total deposits,” said Noor Menai, president and chief executive of Los Angeles-based lender CTBC Bank USA and advisory board member of the Federal Reserve Bank of San Francisco. “Absent any more bad news or unforeseen market events, the banking system is stable.”

Fed officials have said they expect reverse repo balances to decline as they drain reserves from the banking system by shrinking their asset holdings.

If the balances don’t decline, central bankers could bump up against their goal that “ample reserves” remain floating around the banking system and raise questions over whether to prematurely end the portfolio runoff program.

Officials have signaled they would like to avoid that outcome. Federal Reserve Bank of Dallas President Lorie Logan, who helped design the facility as a senior executive at the New York Fed, called for patience in waiting for market forces to move reserves around the system.

“The process of redistribution from the overnight reverse repo facility to banks won’t necessarily be perfectly smooth,” she said in a January speech.


Updated: 4-6-2023

Stocks Haven’t Looked This Unattractive Since 2007

The allure of shares dimmed when bond yields surged and the corporate-earnings picture continued to darken.

The reward for owning stocks over bonds hasn’t been this slim since before the 2008 financial crisis.

The equity risk premium—the gap between the S&P 500’s earnings yield and that of 10-year Treasurys—sits around 1.59 percentage points, a low not seen since October 2007.

That is well below the average gap of around 3.5 points since 2008. The reduction is a challenge for stocks going forward. Equities need to promise a higher reward than bonds over the long term. Otherwise, the safety of Treasurys would outweigh the risks of stocks losing some, if not all, of investors’ money.

The allure of stocks dimmed recently when bond yields shot higher and the corporate-earnings picture continued to darken.

The Federal Reserve now faces the dual challenge of raising interest rates to cool inflation while reaching into its toolbox to prevent a full-blown banking crisis from erupting—both of which cloud the outlook for stocks.

The S&P 500 has clawed back some of last year’s 19% decline, rising 6.5% in 2023. The Bloomberg U.S. Aggregate Bond index has jumped 3.9%, boosted by an early-year rally and higher yields.

Bonds are offering a “once in a generation opportunity, but not once in a lifetime,” said Tony DeSpirito, BlackRock Inc.’s chief investment officer of U.S. fundamental equities.

The current equity risk premium is closer to the longer-term norm: The average premium since 1957 is around 1.62 points, BlackRock research shows. That means stocks should still offer a better return than bonds given their historical outperformance, Mr. DeSpirito added.

The equity risk premium falls when bond yields rise, or a stock’s price/earnings ratio jumps—either due to weaker earnings or higher stock prices. The earnings yield, meanwhile, is the ratio of profits from the past year to current stock prices.

October 2007 would turn out to mark a precarious time in markets. Stocks had recently hit their highest level on record, and the federal-funds rate was near its current level at around 4.8%.

Over the following year, the S&P 500 would go on to drop roughly 45%, and the Fed would cut rates to near zero. Bloated stock valuations reset; bond yields cratered. By March 2009 when the stock market bottomed, stocks’ premium over Treasurys had risen above 7 points and a new bull market was born.

Stocks look pricey again today, and markets and the economy are facing a new host of challenges. By at least one valuation measure, U.S. stocks are currently more expensive than those of any other country or region, Research Affiliates’ data show.

That is based on the S&P 500’s price level relative to inflation-adjusted corporate earnings over the past 10 years, or the CAPE ratio.

Although well off prior peaks seen in the late 1990s and during the exuberance that followed the onset of Covid-19, the U.S. stock benchmark now trades at a multiple of 28.3, pricier than it has been more than 90% of the time since 1881.

Valuations have historically plummeted during economic recessions, though some analysts say lofty valuations won’t prevent stock prices from continuing to rise.

“We have seen the peak for stock-market valuations, but that doesn’t necessarily mean we’ve seen peak prices yet in this cycle,” said Jawad Mian, founder of macro-advisory firm Stray Reflections.

The economy is much more resilient to high interest rates than it has been in the past, said Mr. Mian. High nominal growth—boosted by inflation—will continue to support earnings more than Wall Street’s consensus currently sees, preventing a significant drop in stock prices, he said.

Analysts expect earnings among companies in the S&P 500 to edge up roughly 1.6% in 2023, according to FactSet. At the end of last year, they were calling for a 5% increase.

Since 1957, equities have beaten out fixed income more than two-thirds of the time when they were held for at least a year, BlackRock research shows. Stocks’ favorability improves as holding periods lengthen.

Focusing on stocks’ slim risk premium misses part of the picture, Mr. DeSpirito of BlackRock says. Fed intervention—suppressing short-term rates and buying up long-term bonds—created an abnormal risk-reward profile for stocks after the 2008 financial crisis. He encourages investors to seek stocks with resilient margins and strong earnings growth, while avoiding overvalued companies.

Some investors say frothy valuations mean value stocks—those trading at a discount to their book value, or net worth—warrant consideration.

Value stocks are “dirt cheap” relative to growth, now more discounted than they have been four-fifths of the time in U.S. stock-market history, according to Rob Arnott, founder and chairman of Research Affiliates.

Although value stocks trumped their growth-oriented peers during last year’s rout, growth stocks are back in the lead. The Russell 3000 Growth Index has jumped 12% in 2023 while the Russell 3000 Value Index has remained relatively flat.

When inflation has run between 4% to 8% a year, value stocks have outperformed their growth peers by 6 to 8 percentage points annually, Mr. Arnott said. Consumer prices rose 6% in February from the year before, the smallest increase since September 2021.

“Inflation is wonderful for value,” he added.


Updated: 12-11-2023

Banks Are Ditching Their Branches And Customers Are Ditching Banks??? #GotBitcoin #BitcoinFixesThis

For decades, bank branches have been a fixture on America’s Main Street’s—many built of handsome stone to resemble miniature Greek temples. Now the nation’s largest banks seem to be rushing to shut them down.

Over the past 12 months, Wells Fargo has closed 258 branches, JPMorgan Chase 165 and Bank of America nearly 100, according to S&P Global Market Intelligence. In all, the number of bank branches in the U.S. has shrunk by more than one-fifth to just 78,000 today from nearly 100,000 in 2009.

Soft profits and aggressive cost cutting mean still more Americans will see their local bank branch close its doors in 2024, says Nathan Stovall, head of financial institutions research, at S&P Global Market Intelligence. “Banks have recognized that their physical footprint does not need to be as large today,” he says. “As revenue pressures persist, banks likely will continue to shrink branch networks.”

But while losing your neighborhood branch may be inconvenient, the broader trend reflects how more and more Americans prefer to manage their money. Online banks offer a hard-to-beat combination of higher interest rates and lower fees.

As digital banking apps continue to improve, it’s often faster and easier to simply pull out your phone for most transactions, experts say.

Online banks offer most customers a better deal.

Next year, visiting your local bank branch may get a little harder. But, say industry experts, if that nudges you to open an online savings or checking account, it might be a good thing.

“Those who can get themselves comfortable with online banking are going to get rewarded,” says Chuck Failla, a financial advisor based in Stamford, Conn.

When To Switch To An Online Bank

Gone are the days when opening a new account meant bringing your driver’s license and paper documents to a bank and waiting in line for a teller.

Now, you can open an account online in less than half an hour with a Social Security number, date of birth, address, and an account number or debit card number to make an initial deposit.

You can also deposit a check, transfer money, buy a certificate of deposit and more without having to leave your couch.

“The list of things that you need to do in a branch keeps getting shorter and shorter,” says Jim Perry, a senior strategist at Market Insights, a consulting firm for banks.

Aside from the obvious benefit of digital banking saving you travel time and energy, online banks have lower overhead that frequently translates into better terms of financial products.

For checking accounts, that means skipping monthly fees that can eat away at your paycheck.

And for savings accounts it means higher interest rates. While the average national rate on savings accounts is just 0.46%, many online banks are offering rates of between 4% and 5%.

My Banking Direct and BrioDirect—two online banks that made Buy Side from WSJ’s monthly round up of the best savings account rates—are both offering 5.35% annual percentage yields on their high-yield savings accounts.

“There’s really no reason for someone not to be getting at least a 4.5%-to-5% yield…these days,” Failla says.

When To Stick With A Branch Network

While online banking offers many perks, there are people for whom ditching a physical branch wouldn’t make sense, like some small-business owners.

The owner of a neighborhood restaurant or pizzeria, for example, may be better off bringing their cash to a bank at the end of the day as opposed to paying an armored car service to come pick it up, Failla says.

People who frequently need to exchange foreign currency may also want to keep the in-person option, he adds.

But many of the activities you are used to doing at your bank can likely be done elsewhere or digitally. If you’re only sticking with your physical bank for notary services, you can visit a UPS store instead, points out Anna Sergunina, a financial advisor based in Los Gatos, Calif. Don’t live near a UPS store? The National Notary Association’s website has a list of other options.

Of course, there are some people who just prefer the in-person experience of visiting a physical branch. If that’s you, consider opening an online account in addition to your traditional bank so that you can take advantage of higher saving rates online banks offer, Sergunina says.

You should be able to link the accounts to easily shift money back and forth. You can also try to transition some of the banking activities you’re doing at a branch to an app.

“You can do a lot of these things on your phone or your computer—I’ll take that any time versus having to walk or drive somewhere to do the same thing,” Sergunina says. “It just makes your life a lot easier.”


Updated: 4-18-2024

Companies Belly Up To Cash Buffet, In Five Charts

Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

With high rates beckoning, the dash to money-market funds and other high-yielding accounts is expected to continue—even if the Fed cuts rates, advisers say.

Companies are socking away cash at the fastest rate since the onset of the pandemic.

Four years ago, companies boosted their cash holdings to weather economic uncertainty stemming from virus-related lockdowns.

Now, with interest rates hovering at two-decade highs, they are allocating more of their portfolios to high-yielding cash accounts and investments, getting a welcome boost from yields that top 5% on money-market funds.

High interest rates are a boon to cash-rich companies. What counts as cash or cash equivalents on corporate balance sheets includes cash deposits and investments with maturities of three months or less, including money-market funds, Treasury bills and commercial paper.

Separately, companies also invest in short- and long-term securities.

On Tuesday, the Federal Reserve dialed back expectations that it would cut rates this year without signs of an economic slowdown, following a string of hotter-than-expected inflation reports.

Still, companies are preparing their playbooks on how they would respond to a cut, including by parking more cash in money-market funds, where rates take weeks to adjust, bankers and advisers said.

“It’s about trying to capture as much of that yield as they can,” said Suraj Kalati, global head of working capital solutions at Wells Fargo.

At Facebook parent Meta Platforms, interest and investment income increased more than threefold in 2023, to $1.6 billion, compared with a year earlier. At Google parent Alphabet, the same figure increased 78% over the same period, to $3.9 billion.

As earnings season gets under way, companies are providing details on their cash positions. Here’s a look at how corporate cash strategies have changed since the Fed began raising rates in 2022.

Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin

Nonfinancial companies in the S&P 500 parked 56% of their funds in cash and cash equivalents, and the remainder in securities at the end of 2023, the highest level since the first quarter of 2020, according to JPMorgan Chase.

The increase in cash allocations is largely due to companies moving cash into money-market funds, according to Teresa Ho, managing director and head of U.S. short duration strategy at JPMorgan.

In previous rate-cutting cycles, money-market funds have seen inflows even after the Fed began to cut rates, because the funds adjust more slowly to rate cuts than Treasury bills do, according to Ho.

Still, the total value of cash on corporate balance sheets has dipped from its peak in 2021, though it remains higher than before the pandemic.

Companies held $3.61 trillion in cash and equivalents on their balance sheets during the fourth quarter of 2023, down 2% compared with the end of 2021, but up 11% compared with 2022, according to S&P Global Market Intelligence.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Companies are parking more cash in money-market funds, where total assets under management jumped 22% by the end of 2023 from a year earlier, to $6.3 trillion, according to Crane Data. By the end of this year’s first quarter, the total had risen to $6.4 trillion.

Money-market investments from nonfinancial companies accounted for approximately 14% of total assets under management at the end of 2023, roughly on par with a year earlier, according to Crane.

The remainder comes mostly from households, as well as governments, pension funds, insurance companies and other firms.

Money-market funds are attractive to companies because they’re more liquid than CDs or other types of short-term investments, said Peter Crane, president of the eponymous firm. “It’s in cash because they might need the money tomorrow,” he said.

The average yield for all money-market fund investors was 5.12% on Tuesday, according to Crane.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Companies are also pushing banks to pay up on deposits. Over the past year, the share of corporate deposits in interest-bearing checking accounts increased 5.5%, while deposits in money-market accounts increased 17.6%, and according to data from Curinos, a financial data and advisory firm. Overall, corporate deposits increased 0.8%.

Non-interest-bearing corporate checking accounts, meanwhile, declined 20.1%, according to Curinos. Most of the decline stemmed from companies swapping into interest-bearing products at the same bank, though some companies also withdrew funds to pay down debt or invest.

Curinos’s data is based on account-level data from a consortium of 25 banks with about $2 trillion in commercial deposits, or nearly 30% of the total, according to firm estimates.

The average rate on interest-bearing checking accounts in March was 3.03%, while the average rate on money-market deposit accounts was 3.79%, according to Curinos.

Companies have the ability to negotiate higher rates on their accounts. Money-market accounts, which are deposits held on bank-balance sheets, are different than money-market funds, which are mutual funds managed by investment managers.

Prior to 2011, banks had been banned from paying interest on most corporate checking accounts under what was known as Regulation Q, which was repealed after the global financial crisis.

But until recently, rates on interest-bearing checking accounts didn’t offer as big of an incentive as they do now to encourage companies to make the switch, according to Peter Serene, a managing director at Curinos.

“Now, for the first time ever, we’re in a post-Reg Q, truly high-rate environment,” Serene said.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


Interest income over the past year has provided a lift to corporate earnings. In 2023, interest and investment income among nonfinancial companies in the S&P 500 more than doubled from a year earlier, to $69.5 billion.

Interest expense, meanwhile, increased by 23%, to $234.5 billion according to S&P Global Market Intelligence.

At Signet Jewelers, which owns brands including Kay and Jared, interest income outweighed interest expense, even though the company’s debt load remained about the same.

Signet reported $18.7 million in net interest income during the fiscal year ended Feb. 3, compared with a $13.5 million in net interest expense the prior year.

The company’s cash and equivalents increased 18% over the same period, to $1.4 billion. Its debt held steady at about $800 million.

The company has worked in recent years to generate stronger cash flow from operations, including by reducing inventory, said Joan Hilson, the company’s chief financial, strategy and services officer. “That’s what continues to fuel our cash balance, which we then generate interest income on top of that.”


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


At the end of last year, five of the largest U.S. tech companies—Apple, Meta Platforms,, Microsoft and Alphabet—held 23% of aggregate corporate cash investment portfolios of nonfinancial companies in the S&P 500, according to a JPMorgan analysis of corporate filings.

Those five companies last year increased their cash balances and money-market investments in 2023 compared with a year earlier, while decreasing nearly everything else, including corporate debt and U.S. government and agency securities, according to JPMorgan.

Still, the five companies’ largest investments include corporate debt securities, which made up 28% of their total portfolios at the end of 2023, followed by U.S. government and agency securities, which made up 26%, according to JPMorgan.


Updated: 4-19-2024

Traders Are Cashing Out of Markets En Masse

* Traders Just Pulled Billions Out Of Stocks And Junk Bonds

* Elevated Market Valuations Are Now Stirring Investor Angst

The great market rally of 2024 looks dangerously close to unraveling as Wall Street’s once-invincible bull brigade begins to withdraw its winnings.

With Treasury yields breaking out, Federal Reserve hawks ascendant and Middle East strife flaring, money has just been pulled out of equities and junk bonds at the fastest rate in more than a year.

Dip-buyers have been muzzled. The S&P 500 fell every day this week as the top seven tech behemoths closed nearly 8% lower, with equity volatility climbing.

Fueling the reversal is an uptick in tensions that bulls may be less inclined to brush off after ringing up trillions of dollars in trading profits since late October.

First among them is evidence that inflation has supplanted recession as the chief nemesis of central bankers. With commodities surging and economic data stubbornly hot, speakers led by Chair Jerome Powell have poured water on hopes for a long-awaited pivot in monetary policy.

It adds up to a backdrop warranting defense, says Kathryn Rooney Vera, chief market strategist at StoneX Group.

“In a world of high geopolitical risk, upside risk to commodity prices, upside risk to inflation, I think we have to be more conservative in our allocation,” Rooney Vera said by phone.

“I would rotate from high-flying equities at this point, and I would put that into really high-yielding short-term paper.”


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


The view suggests oft-ignored valuation imbalances across assets are starting to matter again. With government bonds selling off, the 10-year Treasury rate pushed back above 4.6%, about 40 basis points above the so-called earnings yield of the S&P 500.

That gap, the rough basis for a valuation tool known as the Fed model, can be framed as the least favorable for equities since 2002, relatively speaking.

Down six days starting last Friday, the S&P 500 tallied its worst losing streak since 2022, extending its April loss to more than 5%. Two-year Treasuries saw their yield briefly push above 5% on Tuesday, part of a fixed-income rout that has erased gains in high yield- and investment-grade bonds for the month.

Traders this week sensed a deliberate effort by central bankers to restrain bets on imminent easing ahead. Powell said Tuesday that it will probably take “longer than expected” to gain the confidence needed to lower rates.

A day later, Fed Governor Michelle Bowman warned progress on inflation may have stalled. On Thursday, asked if it would be appropriate to hold rates steady all year, Minneapolis Fed President Neel Kashkari answered: “potentially.”

Hawkish posturing fanned selling pressure that has been building across investor ranks. Redemptions from stock funds reached $21.1 billion in the two weeks through Wednesday, the most since December 2022, according to Bank of America citing data from EPFR Global.

Investors pulled cash out of junk bonds at the fastest pace in 14 months, according to data from LSEG Lipper. Hedge funds ramped up short positions in US exchange-traded funds at the fastest pace since 2022, Goldman Sachs Group Inc.’s prime brokerage data show.

“There are weak hands selling, and will continue to sell, since they weren’t enthusiastic to buy in the first place,” said Peter Tchir, head of macro strategy at Academy Securities Inc. “People got sucked into chasing the rally, buying stocks at high valuations, now, a month or so later, the trades aren’t working.”

Market-implied expectations for monetary easing have collapsed in the past two weeks as traders price in less than two rate cuts this year. That’s down from as many as six earlier in 2024.

Tensions in the Middle East have reinforced the more cautious stance. Israel reportedly struck back at Iran on Friday morning and while the latest tensions were contained, worries remain about a wider war in a region already roiled by the Israel-Hamas conflict that could send oil prices above $100 a barrel.

Investors today face a pile of risks that they have shown themselves able to live with previously thanks to resilient corporate earnings and spirited economic growth.

The S&P 500 is up 16% since Hamas attacked Israel, 17% since the 10-year Treasury yield’s 2023 peak, and about 20% since the Fed began raising rates two years ago.

Yet the sheer scale of market gains now threatens to work against risk assets, going forward.

Valuation worries are building within the equity ecosystem, particularly the Nasdaq 100, whose seven biggest members saw the worst weekly drop since November 2022.

Cheaper-looking companies have been back to outperforming their often artificial-intelligence-enhanced growth counterparts. The Russell 1000 Value Index fell 0.7% on the week compared to a 5% drop in its growth counterpart.

“There has been a tremendous amount of faith-based investing into AI that pushed up valuations of many megacap tech firms,” said Max Gokhman, head of MosaiQ Investment Strategy at Franklin Templeton Investment Solutions.

“A value overweight looks increasingly more attractive and it’s something we are actively discussing.”

Apple CEO Tim Cook And Other Top Executives Sell Company Stock

Apple CEO Tim Cook And Other Top Executives Sell Company Stock Apple (AAPL) chief executive officer (CEO) Tim Cook and other senior executives have sold more than $70 million U.S. of company stock in April as the share price declines.

The stock sales also come ahead of Apple’s next earnings report that is scheduled for May 2.

Apple’s stock has declined 10% so far in 2024 to trade at $167.04 U.S. per share. However, the decrease has accelerated recently, with the stock dropping 5% in the past month.

The technology giant is expected to announce bad results for this year’s first quarter, with International Data Corp. (IDC) recently reporting that Apple shipped 50.1 million iPhones in Q1, down 9.6% from a year earlier.

In March of this year, the Department of Justice sued Apple in an antitrust case, alleging the company has violated federal law to preserve its dominant position in the smartphone market.

CEO Cook sold $33.3 million U.S. of Apple stock so far in April at an average price of $169.33 U.S. per share.

Cook sold Apple’s stock 12% below its peak of $192.53 U.S. reached in December 2023.

At the same time, Apple chief operating officer (COO) Jeff Williams sold 59,162 Apple shares on April 11 for $10.2 million U.S. at an average price of $172.22 U.S. each.

General counsel Katherine Adams and Deirdre O’Brien, senior vice-president of retail, each sold 54,732 shares on April 2 for $9.2 million U.S.

And chief financial officer (CFO) Luca Maestri sold 53,194 Apple shares on April 11 for $9.3 million U.S. He sold the stock at an average price of $174.12 U.S. per share.

The executive stock sales were made through Rule 10b5-1 trading plans that automatically execute trades when conditions such as price, volume, and timing are met.

The trading plans, which comply with U.S. Securities and Exchange Commission (SEC) rules, are meant to remove any potential for an insider to benefit from knowledge of non-public information.

Updated: 4-21-2024

How JPMorgan’s Cash Hoard Out-Performs Bank of America’s Bond Bets

Jamie Dimon’s bank kept much of the pandemic-era gusher of cash in money markets or at the Fed, while BAC invested in bonds.

When the Federal Reserve flooded the economy with cash during the Covid-19 pandemic it exacerbated a problem for America’s largest banks: What to do with all the extra deposits.

Now that interest rates are set to fall four years later, the payoffs from the differing approaches at JPMorgan Chase & Co. and Bank of America Corp. are abundantly clear: The former’s choice to keep spare cash in money markets or at the Fed turned out to be the much more lucrative strategy than investing in bonds.

The lesson is to keep your options open in the face of great uncertainty, although it would be wrong to criticize Bank of America too harshly: There has been little opportunity to lend into the economy instead and Bank of America’s choices about what to do with all that money were similar to the rest of the sector.

JPMorgan stands out more from the crowd. Today, the good news for the economy is that both still have abundant resources to meet demand for credit when it returns.

To see what happened, look at net interest income, which is the revenue banks earn from loans, money markets and bonds after paying depositors and other interest costs.

JPMorgan’s NII in the first quarter of this year was 60% higher than the quarterly revenue it earned before the pandemic. Bank of America’s NII was just 12% higher.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


That gap is much greater than the difference in the deposit growth at each bank: Bank of America still had 41% more deposits at the end of the first quarter this year than at the start of 2019, while JPMorgan had 65% more.

It did get some extra deposits and loans from its rescue of First Republic last year, but neither is enough to account for JPMorgan’s extra income.

It’s worth stopping for a moment to take in the scale of these banks after the pandemic and the regional bank crisis last year. JPMorgan’s total deposits stood at $2.4 trillion at the end of March and Bank of America’s were $1.95 trillion.

Together, that’s equivalent to one-quarter of all deposits in the US.

During 2020 and 2021, government cash was flooding into people’s and companies’ bank accounts while they were stuck at home spending less and often paying off some debt.

In this period, all banks bought more Treasuries and agency bonds, but in the second half of 2020 Bank of America started to tilt its excess funds toward securities and away from cash, whereas JPMorgan leaned toward cash and stayed there.

At their point of greatest difference in late 2021, the former had nearly two-third of its excess deposits in securities and the latter less than one-third.


Flight To Money Funds Is Adding To The Strains On Banks #GotBitcoin


At first, Bank of America looked smart: The Fed didn’t start raising rates until March 2022 and the effective Fed Funds rate in markets didn’t overtake Treasury yields until November.

But as more hikes came through, the yield JPMorgan was getting on its cash helped its net interest income begin to accelerate away from its rival’s.

For Bank of America there were other issues, too. As bond yields climbed higher, their value tumbled, which led to capital hits for all banks.

But for Bank of America this bought bigger questions about the size of unrealized losses from bonds that it planned to hold to maturity, especially after the collapse of Silicon Valley Bank last year.

In late 2023, Bank of America was carrying $131 billion of unrealized bond losses to JPMorgan’s $34 billion. The chances of Bank of America ever having to book those losses were incredibly slim given its vast cash reserves available for any deposit withdrawals.

Still, there were some awkward headlines, and analysts were still asking last week whether changing bond values in its available-for-sale book could hurt its capital base in the future.

I asked Alastair Borthwick, Bank of America’s chief financial officer, whether he now second-guessed decisions to move more cash into bonds.

“If we had known absolutely two-to-three years ago everything that was going to happen, could we have done a better job? Of course,” he said. “But we’re very comfortable with where we are.”

The question for the wider economy is how this affects either banks’ ability or appetite to lend. In short, it shouldn’t, and the banks themselves insist they would loan more if demand were there.

Across all banks, commercial and industrial loans were about 20% higher at the end of March than they were at the start of 2019, while consumer loans were up 28%.

JPMorgan’s total loans have grown nearly 20% over the same period (excluding First Republic, which added 14 percentage points of growth). Bank of America’s loan growth lags the sector at 11% to the end of March.

JPMorgan has been helped by running the US’s biggest credit-card business, which has seen borrowing recover much more strongly than other types of lending.

But on first-quarter earnings calls, both banks said demand for corporate loans in particular remained muted.

That is likely to change this year as all the spare cash that consumers and companies had from the pandemic is finally running out. Once the cost of borrowing starts to fall again, too, demand for credit should pick up.

Banks should have no trouble meeting it: For JPMorgan and Bank of America, loans accounted for less than 55% of deposits at the end of the first quarter, much lower than the almost 70% at the start of 2019.

Their combined cash and bond holdings, meanwhile, added up to a staggering $3.2 trillion. That can’t all go to lending, but plenty could.


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Bitcoin Takes ‘Lion’s Share’ As Institutional Inflows Hit 7-Month High

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Bitcoin Billionaire Chamath Palihapitiya Opts Out Of Run For California Governor

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Money Supply Growth Went Negative Again In December Another Sign Of Recession #GotBitcoin

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IRS Failed To Collect $2.4 Billion In Taxes From Millionaires

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Six Million Tax Returns Are ‘In Suspension’ At The IRS, And That’s Preventing Many Families From Receiving A Valuable Tax Credit

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Alibaba Admits It Was Slow To Report Software Bug After Beijing Rebuke

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FTX (SBF) Got Approval From F.D.I.C., State Regulators And Federal Reserve To Buy Tiny Bank!!!

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Music Distributor DistroKid Raises Money At $1.3 Billion Valuation

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Catawba, Native-American Tribe Approves First Digital Economic Zone In The United States

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Housing Boom Brings A Shortage Of Land To Build New Homes

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Ever-Growing Needs Strain U.S. Food Bank Operations

Food Pantry Helps Columbia Students Struggling To Pay Bills

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An Antidote To Inflation? ‘Buy Nothing’ Groups Gain Popularity

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Archaeologists Uncover Five Tombs In Egypt’s Saqqara Necropolis

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Former World Bank Chief Didn’t Act On Warnings Of Sexual Harassment

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Virginia-Based Defense Contractor Working For U.S. National-Security Agencies Use Google Apps To Secretly Steal Your Data

Apple Along With Meta And Secret Service Agents Fooled By Law Enforcement Impersonators

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Belgium Arrests EU Lawmaker, Four Others In Corruption Probe Linked To European Parliament (#GotBitcoin)

What Is The Mysterious Liver Disease Hurting (And Killing) Children?

Citigroup Trader Is Scapegoat For Flash Crash In European Stocks (#GotBitcoin)

Cryptocurrency Litigation Tracker Shows Details Of More Than 300 Active And Settled Court Cases Since 2013

Bird Flu Outbreak Approaches Worst Ever In U.S. With 37 Million Animals Dead

Financial Inequality Grouped By Race For Blacks, Whites And Hispanics

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Bitcoin Buyers Flock To Investment Clubs Such As “Black Bitcoin Billionaires” To Learn Rules of The Road

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H.R.5635 – Virtual Currency Tax Fairness Act of 2020 ($200.00 Limit) 116th Congress (2019-2020)

Adam Back On Satoshi Emails, Privacy Concerns And Bitcoin’s Early Days

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How To Raise Funds For Australia Wildfire Relief Efforts (Using Bitcoin And/Or Fiat )

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A Blockchain-Secured Home Security Camera Won Innovation Awards At CES 2020 Las Vegas

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Sergey Nazarov And The Creation Of A Decentralized Network Of Oracles

Google Suspends MetaMask From Its Play App Store, Citing “Deceptive Services”

Christmas Shopping: Where To Buy With Crypto This Festive Season

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Coinbase CEO Armstrong Wins Patent For Tech Allowing Users To Email Bitcoin

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Dissidents And Activists Have A Lot To Gain From Bitcoin, If Only They Knew It (#GotBitcoin?)

At A Refugee Camp In Iraq, A 16-Year-Old Syrian Is Teaching Crypto Basics

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Bitcoin Advertised On French National TV

Germany: New Proposed Law Would Legalize Banks Holding Bitcoin

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Charities Put A Bitcoin Twist On Giving Tuesday

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Blockchain Can And Will Replace The IRS

China Seizes The Blockchain Opportunity. How Should The US Respond? (#GotBitcoin?)

Jack Dorsey: You Can Buy A Fraction Of Berkshire Stock Or ‘Stack Sats’

Bitcoin Price Skyrockets $500 In Minutes As Bakkt BTC Contracts Hit Highs

Bitcoin’s Irreversibility Challenges International Private Law: Legal Scholar

Bitcoin Has Already Reached 40% Of Average Fiat Currency Lifespan

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Unicef To Accept Donations In Bitcoin (#GotBitcoin?)

Former Prosecutor Asked To “Shut Down Bitcoin” And Is Now Face Of Crypto VC Investing (#GotBitcoin?)

Switzerland’s ‘Crypto Valley’ Is Bringing Blockchain To Zurich

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Tim Draper Bets On Unstoppable Domain’s .Crypto Domain Registry To Replace Wallet Addresses (#GotBitcoin?)

Bitcoin Developer Amir Taaki, “We Can Crash National Economies” (#GotBitcoin?)

Veteran Crypto And Stocks Trader Shares 6 Ways To Invest And Get Rich

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SEC Enters Settlement Talks With Alleged Fraudulent Firm Veritaseum (#GotBitcoin?)

Blockstream’s Samson Mow: Bitcoin’s Block Size Already ‘Too Big’

Attorneys Seek Bank Of Ireland Execs’ Testimony Against OneCoin Scammer (#GotBitcoin?)

OpenLibra Plans To Launch Permissionless Fork Of Facebook’s Stablecoin (#GotBitcoin?)

Tiny $217 Options Trade On Bitcoin Blockchain Could Be Wall Street’s Death Knell (#GotBitcoin?)

Class Action Accuses Tether And Bitfinex Of Market Manipulation (#GotBitcoin?)

Sharia Goldbugs: How ISIS Created A Currency For World Domination (#GotBitcoin?)

Bitcoin Eyes Demand As Hong Kong Protestors Announce Bank Run (#GotBitcoin?)

How To Securely Transfer Crypto To Your Heirs

‘Gold-Backed’ Crypto Token Promoter Karatbars Investigated By Florida Regulators (#GotBitcoin?)

Crypto News From The Spanish-Speaking World (#GotBitcoin?)

Financial Services Giant Morningstar To Offer Ratings For Crypto Assets (#GotBitcoin?)

‘Gold-Backed’ Crypto Token Promoter Karatbars Investigated By Florida Regulators (#GotBitcoin?)

The Original Sins Of Cryptocurrencies (#GotBitcoin?)

Bitcoin Is The Fraud? JPMorgan Metals Desk Fixed Gold Prices For Years (#GotBitcoin?)

Israeli Startup That Allows Offline Crypto Transactions Secures $4M (#GotBitcoin?)

[PSA] Non-genuine Trezor One Devices Spotted (#GotBitcoin?)

Bitcoin Stronger Than Ever But No One Seems To Care: Google Trends (#GotBitcoin?)

First-Ever SEC-Qualified Token Offering In US Raises $23 Million (#GotBitcoin?)

You Can Now Prove A Whole Blockchain With One Math Problem – Really

Crypto Mining Supply Fails To Meet Market Demand In Q2: TokenInsight

$2 Billion Lost In Mt. Gox Bitcoin Hack Can Be Recovered, Lawyer Claims (#GotBitcoin?)

Fed Chair Says Agency Monitoring Crypto But Not Developing Its Own (#GotBitcoin?)

Wesley Snipes Is Launching A Tokenized $25 Million Movie Fund (#GotBitcoin?)

Mystery 94K BTC Transaction Becomes Richest Non-Exchange Address (#GotBitcoin?)

A Crypto Fix For A Broken International Monetary System (#GotBitcoin?)

Four Out Of Five Top Bitcoin QR Code Generators Are Scams: Report (#GotBitcoin?)

Waves Platform And The Abyss To Jointly Launch Blockchain-Based Games Marketplace (#GotBitcoin?)

Bitmain Ramps Up Power And Efficiency With New Bitcoin Mining Machine (#GotBitcoin?)

Ledger Live Now Supports Over 1,250 Ethereum-Based ERC-20 Tokens (#GotBitcoin?)

Miss Finland: Bitcoin’s Risk Keeps Most Women Away From Cryptocurrency (#GotBitcoin?)

Artist Akon Loves BTC And Says, “It’s Controlled By The People” (#GotBitcoin?)

Ledger Live Now Supports Over 1,250 Ethereum-Based ERC-20 Tokens (#GotBitcoin?)

Co-Founder Of LinkedIn Presents Crypto Rap Video: Hamilton Vs. Satoshi (#GotBitcoin?)

Crypto Insurance Market To Grow, Lloyd’s Of London And Aon To Lead (#GotBitcoin?)

No ‘AltSeason’ Until Bitcoin Breaks $20K, Says Hedge Fund Manager (#GotBitcoin?)

NSA Working To Develop Quantum-Resistant Cryptocurrency: Report (#GotBitcoin?)

Custody Provider Legacy Trust Launches Crypto Pension Plan (#GotBitcoin?)

Vaneck, SolidX To Offer Limited Bitcoin ETF For Institutions Via Exemption (#GotBitcoin?)

Russell Okung: From NFL Superstar To Bitcoin Educator In 2 Years (#GotBitcoin?)

Bitcoin Miners Made $14 Billion To Date Securing The Network (#GotBitcoin?)

Why Does Amazon Want To Hire Blockchain Experts For Its Ads Division?

Argentina’s Economy Is In A Technical Default (#GotBitcoin?)

Blockchain-Based Fractional Ownership Used To Sell High-End Art (#GotBitcoin?)

Portugal Tax Authority: Bitcoin Trading And Payments Are Tax-Free (#GotBitcoin?)

Bitcoin ‘Failed Safe Haven Test’ After 7% Drop, Peter Schiff Gloats (#GotBitcoin?)

Bitcoin Dev Reveals Multisig UI Teaser For Hardware Wallets, Full Nodes (#GotBitcoin?)

Bitcoin Price: $10K Holds For Now As 50% Of CME Futures Set To Expire (#GotBitcoin?)

Bitcoin Realized Market Cap Hits $100 Billion For The First Time (#GotBitcoin?)

Stablecoins Begin To Look Beyond The Dollar (#GotBitcoin?)

Bank Of England Governor: Libra-Like Currency Could Replace US Dollar (#GotBitcoin?)

Binance Reveals ‘Venus’ — Its Own Project To Rival Facebook’s Libra (#GotBitcoin?)

The Real Benefits Of Blockchain Are Here. They’re Being Ignored (#GotBitcoin?)

CommBank Develops Blockchain Market To Boost Biodiversity (#GotBitcoin?)

SEC Approves Blockchain Tech Startup Securitize To Record Stock Transfers (#GotBitcoin?)

SegWit Creator Introduces New Language For Bitcoin Smart Contracts (#GotBitcoin?)

You Can Now Earn Bitcoin Rewards For Postmates Purchases (#GotBitcoin?)

Bitcoin Price ‘Will Struggle’ In Big Financial Crisis, Says Investor (#GotBitcoin?)

Fidelity Charitable Received Over $100M In Crypto Donations Since 2015 (#GotBitcoin?)

Would Blockchain Better Protect User Data Than FaceApp? Experts Answer (#GotBitcoin?)

Just The Existence Of Bitcoin Impacts Monetary Policy (#GotBitcoin?)

What Are The Biggest Alleged Crypto Heists And How Much Was Stolen? (#GotBitcoin?)

IRS To Cryptocurrency Owners: Come Clean, Or Else!

Coinbase Accidentally Saves Unencrypted Passwords Of 3,420 Customers (#GotBitcoin?)

Bitcoin Is A ‘Chaos Hedge, Or Schmuck Insurance‘ (#GotBitcoin?)

Bakkt Announces September 23 Launch Of Futures And Custody

Coinbase CEO: Institutions Depositing $200-400M Into Crypto Per Week (#GotBitcoin?)

Researchers Find Monero Mining Malware That Hides From Task Manager (#GotBitcoin?)

Crypto Dusting Attack Affects Nearly 300,000 Addresses (#GotBitcoin?)

A Case For Bitcoin As Recession Hedge In A Diversified Investment Portfolio (#GotBitcoin?)

SEC Guidance Gives Ammo To Lawsuit Claiming XRP Is Unregistered Security (#GotBitcoin?)

15 Countries To Develop Crypto Transaction Tracking System: Report (#GotBitcoin?)

US Department Of Commerce Offering 6-Figure Salary To Crypto Expert (#GotBitcoin?)

Mastercard Is Building A Team To Develop Crypto, Wallet Projects (#GotBitcoin?)

Canadian Bitcoin Educator Scams The Scammer And Donates Proceeds (#GotBitcoin?)

Amazon Wants To Build A Blockchain For Ads, New Job Listing Shows (#GotBitcoin?)

Shield Bitcoin Wallets From Theft Via Time Delay (#GotBitcoin?)

Blockstream Launches Bitcoin Mining Farm With Fidelity As Early Customer (#GotBitcoin?)

Commerzbank Tests Blockchain Machine To Machine Payments With Daimler (#GotBitcoin?)

Bitcoin’s Historical Returns Look Very Attractive As Online Banks Lower Payouts On Savings Accounts (#GotBitcoin?)

Man Takes Bitcoin Miner Seller To Tribunal Over Electricity Bill And Wins (#GotBitcoin?)

Bitcoin’s Computing Power Sets Record As Over 100K New Miners Go Online (#GotBitcoin?)

Walmart Coin And Libra Perform Major Public Relations For Bitcoin (#GotBitcoin?)

Judge Says Buying Bitcoin Via Credit Card Not Necessarily A Cash Advance (#GotBitcoin?)

Poll: If You’re A Stockowner Or Crypto-Currency Holder. What Will You Do When The Recession Comes?

1 In 5 Crypto Holders Are Women, New Report Reveals (#GotBitcoin?)

Beating Bakkt, Ledgerx Is First To Launch ‘Physical’ Bitcoin Futures In Us (#GotBitcoin?)

Facebook Warns Investors That Libra Stablecoin May Never Launch (#GotBitcoin?)

Government Money Printing Is ‘Rocket Fuel’ For Bitcoin (#GotBitcoin?)

Bitcoin-Friendly Square Cash App Stock Price Up 56% In 2019 (#GotBitcoin?)

Safeway Shoppers Can Now Get Bitcoin Back As Change At 894 US Stores (#GotBitcoin?)

TD Ameritrade CEO: There’s ‘Heightened Interest Again’ With Bitcoin (#GotBitcoin?)

Venezuela Sets New Bitcoin Volume Record Thanks To 10,000,000% Inflation (#GotBitcoin?)

Newegg Adds Bitcoin Payment Option To 73 More Countries (#GotBitcoin?)

China’s Schizophrenic Relationship With Bitcoin (#GotBitcoin?)

More Companies Build Products Around Crypto Hardware Wallets (#GotBitcoin?)

Bakkt Is Scheduled To Start Testing Its Bitcoin Futures Contracts Today (#GotBitcoin?)

Bitcoin Network Now 8 Times More Powerful Than It Was At $20K Price (#GotBitcoin?)

Crypto Exchange BitMEX Under Investigation By CFTC: Bloomberg (#GotBitcoin?)

“Bitcoin An ‘Unstoppable Force,” Says US Congressman At Crypto Hearing (#GotBitcoin?)

Bitcoin Network Is Moving $3 Billion Daily, Up 210% Since April (#GotBitcoin?)

Cryptocurrency Startups Get Partial Green Light From Washington

Fundstrat’s Tom Lee: Bitcoin Pullback Is Healthy, Fewer Searches Аre Good (#GotBitcoin?)

Bitcoin Lightning Nodes Are Snatching Funds From Bad Actors (#GotBitcoin?)

The Provident Bank Now Offers Deposit Services For Crypto-Related Entities (#GotBitcoin?)

Bitcoin Could Help Stop News Censorship From Space (#GotBitcoin?)

US Sanctions On Iran Crypto Mining — Inevitable Or Impossible? (#GotBitcoin?)

US Lawmaker Reintroduces ‘Safe Harbor’ Crypto Tax Bill In Congress (#GotBitcoin?)

EU Central Bank Won’t Add Bitcoin To Reserves — Says It’s Not A Currency (#GotBitcoin?)

The Miami Dolphins Now Accept Bitcoin And Litecoin Crypt-Currency Payments (#GotBitcoin?)

Trump Bashes Bitcoin And Alt-Right Is Mad As Hell (#GotBitcoin?)

Goldman Sachs Ramps Up Development Of New Secret Crypto Project (#GotBitcoin?)

Blockchain And AI Bond, Explained (#GotBitcoin?)

Grayscale Bitcoin Trust Outperformed Indexes In First Half Of 2019 (#GotBitcoin?)

XRP Is The Worst Performing Major Crypto Of 2019 (GotBitcoin?)

Bitcoin Back Near $12K As BTC Shorters Lose $44 Million In One Morning (#GotBitcoin?)

As Deutsche Bank Axes 18K Jobs, Bitcoin Offers A ‘Plan ฿”: VanEck Exec (#GotBitcoin?)

Argentina Drives Global LocalBitcoins Volume To Highest Since November (#GotBitcoin?)

‘I Would Buy’ Bitcoin If Growth Continues — Investment Legend Mobius (#GotBitcoin?)

Lawmakers Push For New Bitcoin Rules (#GotBitcoin?)

Facebook’s Libra Is Bad For African Americans (#GotBitcoin?)

Crypto Firm Charity Announces Alliance To Support Feminine Health (#GotBitcoin?)

Canadian Startup Wants To Upgrade Millions Of ATMs To Sell Bitcoin (#GotBitcoin?)

Trump Says US ‘Should Match’ China’s Money Printing Game (#GotBitcoin?)

Casa Launches Lightning Node Mobile App For Bitcoin Newbies (#GotBitcoin?)

Bitcoin Rally Fuels Market In Crypto Derivatives (#GotBitcoin?)

World’s First Zero-Fiat ‘Bitcoin Bond’ Now Available On Bloomberg Terminal (#GotBitcoin?)

Buying Bitcoin Has Been Profitable 98.2% Of The Days Since Creation (#GotBitcoin?)

Another Crypto Exchange Receives License For Crypto Futures

From ‘Ponzi’ To ‘We’re Working On It’ — BIS Chief Reverses Stance On Crypto (#GotBitcoin?)

These Are The Cities Googling ‘Bitcoin’ As Interest Hits 17-Month High (#GotBitcoin?)

Venezuelan Explains How Bitcoin Saves His Family (#GotBitcoin?)

Quantum Computing Vs. Blockchain: Impact On Cryptography

This Fund Is Riding Bitcoin To Top (#GotBitcoin?)

Bitcoin’s Surge Leaves Smaller Digital Currencies In The Dust (#GotBitcoin?)

Bitcoin Exchange Hits $1 Trillion In Trading Volume (#GotBitcoin?)

Bitcoin Breaks $200 Billion Market Cap For The First Time In 17 Months (#GotBitcoin?)

You Can Now Make State Tax Payments In Bitcoin (#GotBitcoin?)

Religious Organizations Make Ideal Places To Mine Bitcoin (#GotBitcoin?)

Goldman Sacs And JP Morgan Chase Finally Concede To Crypto-Currencies (#GotBitcoin?)

Bitcoin Heading For Fifth Month Of Gains Despite Price Correction (#GotBitcoin?)

Breez Reveals Lightning-Powered Bitcoin Payments App For IPhone (#GotBitcoin?)

Big Four Auditing Firm PwC Releases Cryptocurrency Auditing Software (#GotBitcoin?)

Amazon-Owned Twitch Quietly Brings Back Bitcoin Payments (#GotBitcoin?)

JPMorgan Will Pilot ‘JPM Coin’ Stablecoin By End Of 2019: Report (#GotBitcoin?)

Is There A Big Short In Bitcoin? (#GotBitcoin?)

Coinbase Hit With Outage As Bitcoin Price Drops $1.8K In 15 Minutes

Samourai Wallet Releases Privacy-Enhancing CoinJoin Feature (#GotBitcoin?)

There Are Now More Than 5,000 Bitcoin ATMs Around The World (#GotBitcoin?)

You Can Now Get Bitcoin Rewards When Booking At Hotels.Com (#GotBitcoin?)

North America’s Largest Solar Bitcoin Mining Farm Coming To California (#GotBitcoin?)

Bitcoin On Track For Best Second Quarter Price Gain On Record (#GotBitcoin?)

Bitcoin Hash Rate Climbs To New Record High Boosting Network Security (#GotBitcoin?)

Bitcoin Exceeds 1Million Active Addresses While Coinbase Custodies $1.3B In Assets

Why Bitcoin’s Price Suddenly Surged Back $5K (#GotBitcoin?)

Zebpay Becomes First Exchange To Add Lightning Payments For All Users (#GotBitcoin?)

Coinbase’s New Customer Incentive: Interest Payments, With A Crypto Twist (#GotBitcoin?)

The Best Bitcoin Debit (Cashback) Cards Of 2019 (#GotBitcoin?)

Real Estate Brokerages Now Accepting Bitcoin (#GotBitcoin?)

Ernst & Young Introduces Tax Tool For Reporting Cryptocurrencies (#GotBitcoin?)

Recession Is Looming, or Not. Here’s How To Know (#GotBitcoin?)

How Will Bitcoin Behave During A Recession? (#GotBitcoin?)

Many U.S. Financial Officers Think a Recession Will Hit Next Year (#GotBitcoin?)

Definite Signs of An Imminent Recession (#GotBitcoin?)

What A Recession Could Mean for Women’s Unemployment (#GotBitcoin?)

Investors Run Out of Options As Bitcoin, Stocks, Bonds, Oil Cave To Recession Fears (#GotBitcoin?)

Goldman Is Looking To Reduce “Marcus” Lending Goal On Credit (Recession) Caution (#GotBitcoin?)

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