It would be impractical to keep the cash in the form of 100 dollar bills. Given that, they need to be database entries in the Fed's system, and the Fed has discouraged banks from trying to keep large balances long-term: https://www.chicagobooth.edu/review/safest-bank-fed-wont-san...
Interesting. That article from 2018 speculates on the Fed's motivation, but seems upfront that nobody is certain why they gave TNB such a hard time. Has the story developed since then? Did the suit go to trial?
EDIT: In 2020 the Southern District of New York court dismissed TNB's complaint[1], finding the 18 month wait did not construe a denial (despite the application form saying a decision "may take 5-7 days"). I guess there was no appeal?
Comments
It would be impractical to keep the cash in the form of 100 dollar bills. Given that, they need to be database entries in the Fed's system, and the Fed has discouraged banks from trying to keep large balances long-term: https://www.chicagobooth.edu/review/safest-bank-fed-wont-san...
Interesting. That article from 2018 speculates on the Fed's motivation, but seems upfront that nobody is certain why they gave TNB such a hard time. Has the story developed since then? Did the suit go to trial?
EDIT: In 2020 the Southern District of New York court dismissed TNB's complaint[1], finding the 18 month wait did not construe a denial (despite the application form saying a decision "may take 5-7 days"). I guess there was no appeal?
[1] https://justmoney.org/the-narrow-bank/