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.
Master account?
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.
True enough.
“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.”
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.
