Banks including JPMorgan Chase and Citigroup have held conversations with some large corporate clients about putting cash into money market funds rather than in deposits, according to people briefed on the talks.
The discussions followed a Federal Reserve decision in March to end looser capital rules for banks that were put in place early in the pandemic. The regulatory relief had helped lenders to cope with a surge in deposits that resulted from US fiscal stimulus and the Fed’s quantitative easing policies.
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