Please see this Wikipedia discussion of Section 128 of the bailout bill which allowed the Fed to start paying interest on banks’ deposits.

Apparently, banks are now kiting their capital to each other so they can put it back on deposit in risk-free Fed accounts, earning this new form of interest from the taxpayers since early October, instead of facilitating the credit markets, e.g., for commercial paper, which are still frozen.

I note that doing so serves to support neither employment stability nor price stability; in fact, it’s a very inflationary way to put everyone out of work. The fact that there are now securities lawyers on Wikipedia article talk pages defending the practice gives me pause. In fact, this is so absurd as to be comical.

Who is asking Bernanke about this?

Thank you for your help.