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tax money stored by banks at the Federal Reserve, when the excess reserve holds more than $10 billion.

Created by M.C. on February 04, 2013

Banks may store extra money at the Federal Reserve; this is called "excess reserves". Before the financial crisis in Sept 2008, the excess reserve held $2 billion. After the crisis, it was $800 billion; it now holds $1,500 billion. (http://www.federalreserve.gov/releases/h3/)
If this money were used for lending instead of being stored at the Federal Reserve, it would create jobs in our economy through car loans, business loans, and mortgages. However, right now banks prefer to store their money at the Federal Reserve than lend it out.
We ask the White House to get legislation passed that TAXES MONEY IN THE EXCESS RESERVE when it holds more than $10 billion. This ensures these billions of dollars will re-enter the economy, reducing unemployment either by bank loans or by federal spending.

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