Bank of America debt security now stands at nearly $970bn

 The biggest US banks highlighting the debate on Wall Street over the direction of interest rates.

 JPMorgan Chase is more inclined to park deposits at the Federal Reserve than buy potentially overpriced Treasuries    

 Lending out the money would be their preferred option. But loan growth has been sluggish as companies have found ample liquidity in the bond markets and consumers have paid down debts on credit cards.

 If rates move higher, Treasuries could fall out of favour with the banks, creating a negative feedback loop in the markets.

FT 16 October 2021

https://www.ft.com/content/0731c2ad-2e33-4023-a35e-a4fcdbc49c17