Glenwood National Bank

Glenwood National Bank is short of required legal reserves. The bank’s money
manager estimates it will need to raise an additional $50 million in funds to
cover its reserve requirement over the next three days. Federal funds are trading
today at 5.90 percent, and the bank’s economist has forecast a federal funds
rate of 6.15 percent tomorrow and 6.20 percent the next day. Negotiable CDs
in minimum maturities of seven days have been trading this morning at 5.85
percent, with a forecast of 5.90 percent tomorrow and 5.98 percent the next day.
The FDIC charges 30 cents per $100 for insurance coverage