1 hour ago
2
Key Takeaways
- Fed released skinny account proposal May 20, one day after Trump executive order.
- No credit, no interest, no overdraft, no FedACH: access limited to Fedwire and FedNow.
- Charter requirement unchanged: only state or OCC national trust bank charter holders eligible.
- All 12 regional Fed banks instructed to freeze outstanding applications during comment period.
What the Skinny Accounts Actually Permit
The accounts provide direct connectivity to Fedwire Funds and FedNow, which based on publicly available Federal Reserve documentation handle large-value and real-time wholesale settlement respectively. Account holders cannot access intraday credit or the emergency discount window, earn no interest on overnight reserve balances, and face automated controls that prevent overdrafts with maximum closing balances calibrated to expected tra...
English (US)