Cashless NIRP economy signal

SUBHEAD: Cashless economy would let banks set negative interest rates well below -1%.

By Tyler Durden on 10 February 2016 for Zero Hedge -

Image above: Morgan Stanley bank sign on headquarters building.  The company is paying a fine of $3.2 billion to end lending rpobe. See article below. From (

With central bankers losing credibility left and right, and failing outright to boost the "wealth effect" no matter what they throw at it, the next big question is when will central planners around the world unveil the cashless society which is a necessary and sufficient condition to a regime of global NIRP.
Image above: Chart of recent interest rates and monetary base. Click to embiggen. From original article.

And while in recent days we have seen op-eds by both Bloomberg and FT urging the banning of cash, the most disturbing development we have seen yet in the push for a cashless society has come from the following slide in a Morgan Stanley presentation, one in which the bank's head of EMEA equity research Huw van Steenis, pointed out the following...

... and added this:
One of the most surprising comments this year came from a closed session on fintech where I sat next to someone in policy circles who argued that we should move quickly to a cashless economy so that we could introduce negative rates well below 1% – as they were concerned that Larry Summers' secular stagnation was indeed playing out and we would be stuck with negative rates for a decade in Europe. They felt below (1.5)% depositors would start to hoard notes, leading to yet further complexities for monetary policy.
Consider this the latest, and loudest, warning on the road to digital fiat serfdom.

Morgan Stanley settles for $3.2 billion

By Daniel McDonald on 11 February 2016 for Daily Newsx

Morgan Stanley is paying $3.2 billion — the largest fine in its history — to settle claims that it sold soured mortgage-backed bonds in the run up to the financial crisis.

The Wall Street bank peddled the securities to investors even though traders knew many of the underlying home loans were underwater, according to the settlement with New York Attorney General Eric Schneiderman.

Traders openly bragged about using “magic” to make the bonds look better than they actually were, according to the settlement released on Thursday morning.

Under the terms of the deal, the state will get $550 million to help community rebuilding efforts, the AG’s office said.

“Today’s agreement is another victory in our efforts to help New Yorkers rebuild in the wake of the financial devastation caused by major banks,” Schneiderman said in a statement.

Morgan Stanley, led by CEO James Gorman, is the latest bank to get fined over the sale of busted mortgage-backed securities. Last month, Goldman Sachs paid $5 billion to settle similar charges.

Shares of Morgan Stanley were down 3.3 percent, at $21.96, on Tuesday morning amid a broader market sell-off.

The Post broke the news of the settlement ahead of the announcement.

EXCLUSIVE: NY AG Schneiderman to announce $3.2BB settlement with Morgan Stanley over RMBS. $550 going million to New York. via @KevinTDugan


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