Bill > S2113

This bill, titled the "End the Fed's Big Bank Bailout Act," seeks to amend the Federal Reserve Act by prohibiting Federal Reserve banks from paying earnings or interest on balances that depository institutions (such as banks, credit unions, and savings associations) maintain at Federal Reserve banks. Specifically, the bill would remove the existing provision in Section 19(b) of the Federal Reserve Act that allows for such earnings and replace it with a new paragraph that explicitly forbids the payment of any earnings on these institutional account balances. The practical effect of this legislation would be to eliminate a potential financial benefit for banks by preventing them from receiving interest on the money they keep in reserve with the Federal Reserve, which could potentially impact bank financial strategies and monetary policy interactions with the central banking system.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2113/all-info