I thought it was all on deposit at the Fed. All $600 billion of it, earning a tidy some in interest. If the Fed wants them to lend it they should stop paying them interest and start charging a custody fee of 1% a month. It would soon find another home. Maybe they don't care but the Government should force their hand by threatening to set up half a dozen state banks and lend to those who are solvent amongst the public and the corporate sector directly. I think the prospect of seeing their business being snatched from under them might change a few minds...

In the UK we already have a number of state owned banks which I should imagine the meddler in chief Brown will be brow beating to his will right now. Every time I see him on TV he has a smile on his face and little wonder. When was the last time an old fashioned socialist got his hands on most of G7 nation's banking industry. He's like a kid in a candy store. I'll never forgive the jerk for flogging half our gold...