5 Oct 2018 6:32 am
....these republicrats have some strange STRANGE priorities...they know every jot and tittle of blasey ford's and snotty kavanaughty's high school gossip...volumes..............yet the goddamned fools are WORSE THAN CLUELESS as to the mo$t important thing$.....Sgt Bilko » 04 Oct 2018 8:19 am » wrote:SQUAWK...dildo wanna cracker...SQUAWK......
https://www.quora.com/Are-commercial-ba ... sury-bonds
Are commercial banks allowed to use their excess reserves to purchase treasury bonds?
That's a difficult one to answer in detail, because I don't work in the Treasury department of a Commercial Bank, but …
There are rules about how much cash Banks need to hold in reserve, usually as a function of their loan book. These rules are in place to ensure continuing solvency. However as I understand it there are very few rules that govern what can be done with the excess (apart from restrictions on illicit investment) so the short answer is ‘yes, they can’.
Additionally there are few institutions with the sort of capital to invest effectively in treasury bonds who are not Banks, so it kind of makes sense that they are allowed to.