All participating banks have AA or AAA degrees. They issue bank bonds, called MTN (Medium Term Notes). They usually have a 10-year term and a 5 to 7 ½ percent coupon.
This information is well known. What is unknown is that each MTN document is covered by a US treasury document deposited by the FED into the issuing bank. MTN are in strong demand because they combine high double safety and high return.
The banks transfer their sales revenues, profits and commissions to the US treasury via FED. The exported MTN are offset by US treasury securities and therefore the MTN are not included in the annual reports of the issuing banks.
These securities are traded under discounted cuts due to various factors such as discounting, market return, issuer quality and above all purchasing power and slice rhythm. They have a CUSIP and a registration number so they can be fully processed.