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us_news·US NewsbyMaggoty

‘Stunning’ Revelation Bolster’s Wyoming-Based Custodia Bank’s Case Against Federal Reserve

cross-posted from: https://lemmy.world/post/403754

A Federal Reserve database of master accounts reveals “stunning” information in Wyoming-based Custodia Bank’s precedent-setting lawsuit against the Fed for denying its master account.

https://cowboystatedaily.com/2023/06/21/stunning-revelation-bolsters-wyoming-based-custodia-banks-case-against-federal-reserve/Open linkView original on lemmy.world
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anicius
lemmygrad.ml

“MORE THAN 1,000 current Fed master account holders have no federal deposit insurance,” she tweeted. “And several current Fed master account holders do not appear to have been eligible for one, yet the Fed granted them one anyway.”

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Maggotyreply
lemmy.world

Interestingly FDIC insurance isn't required according to the St Louis Reserve. Link

I wonder what the break down on the existing ones without insurance being tier 2 and tier 3 are.

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Maggotyreply
lemmy.world

It's a bank account with the Fed for a bank. It basically allows them to function as a bank. Without it they need an intermediary. It appears the government has been denying these accounts to some banks that states either created or sanctioned.

I'm not totally sure myself yet why or what the exact details are but it seems like a thing to keep an eye on.

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‘Stunning’ Revelation Bolster’s Wyoming-Based Custodia Bank’s Case Against Federal Reserve | Spyke