Judging from the language and the tone of the outrage and condemnation of bankers, it is a wonder that no bankers have yet been attacked by lynch mobs.
After the crisis, however, reserves were plentiful because the Federal Reserve funded its largescale asset purchases through adding reserves to the system—crediting the bank accounts of those who were selling assets to the Fed. Moreover, in light of the FOMC’s decision not to sell the longer-term securities it acquired, reserves were likely to remain plentiful for the foreseeable future.