RE:RE:News outthey don't need more they sold enough assets last year and now have excess capital.
they stil have to pay a stand by charge and facility fee in total of 1.35 % even if they don't draw a single penny. the $ 2Billion was there way of saying if they don't have any demand deposits they could still run the company. Depositors returned but not at the same levels and the company is no longer dependent upon demand depositors and are less vulnerable to the whims and fears of those type of depositors.
The interest rate is just slightly above 3 % which is a huge savings compared to the HOOP rate of 10 % plus facility fee and the Berkshire Hathway which was 9 % plus facilty fee.
ti should improve their NIM for sure. But now they aren't borrowing and paying for more loans than they need.