Bill Nelson on How Bank Examiner Preferences are Obstructing Monetary Policy
Macro Musings with David Beckworth
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Regional Banks Liquidity Contingency Plans
It's hard to see how there's moral hazard associated with converting the same assets that the Fed accepts in open market operations to cash at the standing repo facility. That's kind of a very, I forget the word for sort of domestic blinders seeing it in your own regional way. The issue is whether or not they can write down in their liquidity press scenarios, whether they plan to use, there's no credit risks to the Fed. Reversing the process we spoke of at the very beginning of this program, which increases reserve balances. We look forward to an important change in the planning of regional banks liquidity contingency plans.
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