Reuters writes "Major Borrowers to Reduce Bank Deposits: Fed Survey". It says, "Wall Street dealers expect hedge funds, insurance companies and other borrowers to pull some cash from commercial banks when a financial crisis-era deposit insurance program expires at the end of the year, the Federal Reserve said on Thursday. The U.S. central bank's quarterly survey of senior credit officers found that most expect their clients to get rid of at least some commercial bank deposits and instead park their cash in securities such as repurchase agreements, money market funds or Treasury bills.... The Transaction Account Guarantee program began in the midst of the financial crisis to reassure depositors and induce them to keep their cash in banks. It removed a $250,000 cap on the size of non-interest bearing checking accounts that the Federal Deposit Insurance Corp. would insure."
