Navigating Bank Crises: Experts Weigh In on Solutions.

The Federal Reserve's "overnight reverse repurchase agreement facility" (ON RRP) has swelled to $2.3tn and is making banks angry, as they see it as a major factor in their loss of deposits. The facility enables money market mutual funds to accept vast sums of investors' money and pay their customers higher interest rates than banks typically do. Usage of the facility was zero two years ago but has soared as the Fed tightens. To banks, this is unwelcome competition. They benefit from their unique access to liquidity (and safety) from the Fed; lightly regulated money market funds are a threat to that, and all the more so in this jittery moment.