Banks exploiting Fed’s facility, borrowing at a lower rate, then profiting by parking at a higher-interest unit.
Banks are pocketing real money by borrowing money from the Fed's newest backstop facility, which charges a lower rate, and then parking it at another unit of the Fed, which pays higher interest. Banks are borrowing record amounts from this new facility. https://t.co/0Yt4STWbb9 pic.twitter.com/UYElYhjQxa — Lisa Abramowicz (@lisaabramowicz1) December 22, 2023 via Bloomberg: Banks borrowed …