SiP Posted March 12 Report Share Posted March 12 so many interesting post in this thread......but maybe we should treat this as a bottom? 1 Link to comment Share on other sites More sharing options...
sandy beach Posted March 12 Report Share Posted March 12 3 minutes ago, DrStool said: There's not enough money in the world to insure all US deposits. But conversely, if in a panic contagion, everybody buys Treasuries bond prices would soar. Problem solved because the banks will recoup most of their losses and they'd be able to fund the bank runs. Oh the irony! Link to comment Share on other sites More sharing options...
MisFit Kid Posted March 12 Report Share Posted March 12 So to get interest rates lower......Have a Bank Run.... and a wave of "sincere" criminals to giving the "Hollywood" speech saying...... TRUST ME As they are laughing all the way to a closed bank? 2 Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 1 hour ago, sandy beach said: This looks a bit at Jimi's point that HTM can't be hedged for interest rate risk. They come to the conclusion the Fed was at fault for for killing SVB by raising rates too fast. I can't agree with this. The Fed was responsible for a lot of this. But risk managers should have seen this coming. Either that or a regular Joe like me knows more than their highly paid risk managers https://michaelwgreen.substack.com/p/the-valley-of-despair The Fed did not raise rates. Link to comment Share on other sites More sharing options...
MisFit Kid Posted March 12 Report Share Posted March 12 Gives new meaning to the phrase...... Selection Sunday Link to comment Share on other sites More sharing options...
sandy beach Posted March 12 Report Share Posted March 12 The Glass-Steagall Act effectively separated commercial banking from investment banking Bring it back! Link to comment Share on other sites More sharing options...
sandy beach Posted March 12 Report Share Posted March 12 Lower the GSB limits back down to $50B on banks in the US. My goodness - how many times do we have to go through this? Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 GSB for 500 Alex. 1 Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 Washington, DC -- The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg: Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer. Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law. Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm 1 Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy. The Federal Reserve is prepared to address any liquidity pressures that may arise. The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress. With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP. The Federal Reserve does not anticipate that it will be necessary to draw on these backstop funds. After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, Treasury Secretary Yellen, after consultation with the President, approved actions to enable the FDIC to complete its resolutions of Silicon Valley Bank and Signature Bank in a manner that fully protects all depositors, both insured and uninsured. These actions will reduce stress across the financial system, support financial stability and minimize any impact on businesses, households, taxpayers, and the broader economy. The Board is carefully monitoring developments in financial markets. The capital and liquidity positions of the U.S. banking system are strong and the U.S. financial system is resilient. Depository institutions may obtain liquidity against a wide range of collateral through the discount window, which remains open and available. In addition, the discount window will apply the same margins used for the securities eligible for the BTFP, further increasing lendable value at the window. The Board is closely monitoring conditions across the financial system and is prepared to use its full range of tools to support households and businesses, and will take additional steps as appropriate. For media inquiries, please email [email protected] or call 202-452-2955. Term Sheet: Bank Term Funding Program (PDF) 2 Link to comment Share on other sites More sharing options...
sandy beach Posted March 12 Report Share Posted March 12 So glad to have all of you guys here! I can't share this nerdy stuff with anyone I know Thanks Doc for this site! 3 Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 22 1/2 years and counting. 3 Link to comment Share on other sites More sharing options...
DrStool Posted March 12 Author Report Share Posted March 12 18 minutes ago, sandy beach said: So glad to have all of you guys here! I can't share this nerdy stuff with anyone I know Thanks Doc for this site! By the way, I'm not nerdy enough to understand the abbreviations and acronyms. Link to comment Share on other sites More sharing options...
Jimi Posted March 12 Report Share Posted March 12 20 minutes ago, sandy beach said: So glad to have all of you guys here! I can't share this nerdy stuff with anyone I know Thanks Doc for this site! Same. 1 Link to comment Share on other sites More sharing options...
SiP Posted March 12 Report Share Posted March 12 Fuck you Fed. 1 Link to comment Share on other sites More sharing options...
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