U.S. Banks Turn to Treasuries as Cash Piles Surpass Loans

Banks have increased their holdings in government debt to $1.99 trillion, driven by excess cash from record deposits and regulatory requirements for liquidity coverage ratios. Despite lending more than before the crisis, banks still have significant funds to invest. The Fed's mandates aim to prevent a repeat of the 2008 crisis by ensuring banks have high-quality liquid assets. Major banks like Bank of America and Citigroup are largely compliant. While the US economy is strong, global economic concerns, such as Europe's recession and Japan's easing, may impact future growth.

What is the unprecedented amount that banks increased their holdings to last month?

Why are banks piling up on government debt according to the discussion?

What are liquidity coverage ratios and why are they important for banks?

Which banks were mentioned as having loaded up on government debt?

What does the IMF's forecast for global growth suggest about the economic outlook?