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Fedwire

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Fedwire
A wire transfer system for high-value payments operated by the Federal Reserve System.

Fed Wire
An electronic system allowing the quick transfer of funds and securities between banks. The fed wire exists to settle large transactions between banks so that they can continue to extend credit to each other and to customers. It is operated by the Federal Reserve and is more formally known as the Federal Reserve Wire Network. See also: Real-time gross settlement system (RTGSS).


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Using Fedwire a regional Federal Reserve Bank debits the account of the sending bank and credits the account of the receiving bank so that the transfer is effectively immediate and this is often referred to as a RTGS (real time gross settlement) system.
However, the same is not true in the large-dollar Fedwire payment system.
The same telecommunications infrastructure damage that had affected the securities market also impaired payments processing at many banks and some were unable to use the Federal Reserve's Fedwire system to execute large payments.
 
 
 
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