The current iteration of the Federal Reserve Bank Board of Governors, with several President Donald Trump appointees, is proposing a rule that would significantly ease the amount of cash big banks must keep on hand to cover bills due within 30 days. The savings from this are expected to aggregate to $77 billion per year—not a lot compared to the total of liquid assets held by those banks already.
There is a rumbling, though. An Obama appointee to the BoG, Lael Brainard, is objecting to the regulatory easing.
She added that banks are “providing ample credit and earning ample profits” under current liquidity requirements.
Yep. There it is again. “I do think at a certain point you’ve made enough money. …you can just keep on making it if you’re providing a good product or providing good service.”
Because the Progressive-Democrat Fed Governor knows better what constitutes sufficient profit and what “good” service is; market participants’ views are unimportant, and she does not hear them.