Greenspan says banks need much more capital

Now the market will tank come January, then the banks will get the rest of TARP.

MISSION ACCOMPLISHED!

 

According to this their capital situation has improved considerably..

http://www.federalreserve.gov/releases/h3/Current/

 

Like Hannibal Lechter returning to the scene of the crime . . . Just lovely.

Screw Alan.

 

This is the first time I've looked at this report. Am I reading this correctly - that banking reserves are up almost 2000% (from $43 Billion to $828+ Billion) from about a year ago?

Geez, why are they still sitting on all that money? Would think they'd start putting it to work after year-end pretty quickly.

 

You have to look at the non-borrowed reserves. Positive for the first time since Jan 2008.

http://www.federalreserve.gov/releases/H3/hist/h3hist4.txt

 

The nonborrowed reserves is the most important, IMO; I think it is the same as the banks' capital.

 

I see. Thanks gbos and ipatent.

I'd guess that going positive for the first time this year is a sign of progress.

 

The TARP disbursements helped, but most of it was the Fed printing new money and loaning it to the banks in exchange for questionable collateral.

The question now is what is on the Fed's balance sheet.

 

http://www.federalreserve.gov/releases/h41/Current/

Answered.

 

reserves have nothing to do with bank capital. reserves are just a tool for monetary policy and a buffer of liquidity for banks