Here's The Plan To Create The Safest Bank In America
Here's The Plan To Create The Safest Bank In America
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What if there were a bank that could never experience a run? And furthermore, what if it paid higher interest rates on deposits than what you could get at other banks? That sounds pretty good, right? Well it might be possible. On this week's episode of the Odd Lots podcast, we talk with Jamie McAndrews, the co-founder and CEO of The Narrow Bank. The Narrow Bank's mission is to offer institutional clients a place to put their deposits and have them backed strictly by reserves held at The Fed. The bank would do nothing else except hold client deposits and then pass along the interest rates that the Fed pays on its reserves. If it works, it could revolutionize banking.
To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net
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