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Euro Crisis May Pack U.S. Banks With Deposits They Can’t Use

The European debt crisis is poised to flood U.S. banks with something they don’t want and can’t use: more money.

Cash held by U.S. banks surged 8.4 percent to a record $981 billion during the week ending July 27, the Federal Reserve said in an Aug. 5 report. That’s more than triple the amount firms had in July 2008, before the collapse of Lehman Brothers Holdings Inc. almost froze bank-to-bank lending.