A new kind of institution wants to make the interest rate the Federal Reserve pays to its member institutions more widely available, but that could have big implications for monetary policy.
James McAndrews, chief executive officer of TNB USA Inc., speaks during an interview in New York, U.S., on Thursday, Oct. 11, 2018. McAndrews, who was director of research at the Federal Reserve Bank of New York, is suing his former employer for permission to create an institution called the Narrow Bank, which would do little more than take in deposits from large investors, stash the money at the Fed, and pay the depositors the rate that deposits at the Fed earn, with a bit shaved off the top to make the enterprise profitable. Photographer: Jeenah Moon/Bloomberg
