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Interest Bearing Corporate Checking Needed
The Federal Reserve Board was asked by the banking industry to approve interest-bearing corporate checking accounts. The reasoning behind the request was so that corporations could link a noninterest-bearing checking account to an interest-bearing money market account. Bankers asked Fed to create a money market account that would allow up to 24 withdrawals a month in order to make the plan work for customers.
The Fed Board, in late July, denied the request, saying it did not have the power to do the deed…that it would take Congressional action to create such a exception.
We might get that about the year 2001.
Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 9, 8/97
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