Federal SB2113 prohibits Federal Reserve banks from paying earnings on balances held by or for depository institutions.
Federal SB2113, also known as the End the Fed’s Big Bank Bailout Act, amends the Federal Reserve Act to prohibit Federal Reserve banks from paying earnings on balances maintained by or on behalf of depository institutions. This change aims to prevent banks from earning interest on funds held at the Federal Reserve, which could otherwise be used to support large financial institutions. The bill directly affects banks and financial institutions by altering the terms under which they can hold reserves at the Federal Reserve.
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- Overview
- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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