Never before have America’s banks been so wary of risking their cash deposits on U.S. government debt.

After holdings of U.S. debt surged to a record $1.89 trillion in 2012, lenders from Citigroup to Bank of America and Wells Fargo are culling for the first time in six years and amassing dollars. Banks’ $1.8 trillion of the bonds now equal less than 70% of their cash, the least since the Federal Reserve began compiling the data in 1973.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access