http://www.zerohedge.com/news/2014-01-16/bernankes-legacy-record-13-trillion-excess-deposits-over-loans-big-4-banks
The history books on Bernanke's legacy have not even been started,
and while the euphoria over the Fed's balance sheet expansion to a
ridiculous $4 trillion or about 25% of the US GDP has been
well-telegraphed and manifests itself in a record high stock market and a
matching record disparity between the haves and the have nots, there is
never such a thing as a free lunch... or else the Fed should be
crucified for not monetizing all debt since its inception over 100 years
ago - just think of all the foregone "wealth effect." Sarcasm aside,
one thing that can be quantified and that few are talking about is the
unprecedented, and record, amount of "deposits" held at US commercial
banks over loans.
Naturally, these are not deposits in the conventional sense, but
merely the balance sheet liability manifestation of the Fed's excess
reserves parked at banks. And as our readers know well by now (here and here) it is these "excess deposits"
that the Banks have used to run up risk in various permutations, most
notably as the JPM CIO demonstrated, by attempting to corner various
markets and other still unknown pathways, using the Fed's excess
liquidity as a source of initial and maintenance margin on synthetic
positions.
So how does the record mismatch between deposits and loans look like?
Well, for the Big 4 US banks, JPM, Wells, BofA and Citi it looks as
follows.
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