The Federal Reserve on Sunday announced a new emergency loan program to bolster the capacity of the banking system in the wake of the collapse of Silicon Valley Bank.Under the new program, banks and other lenders will be able to pledge Treasurys and mortgage-backed securities for cash.The central bank said “it is prepared to address any liquidity pressures that may arise.”
The program is called the Bank Term Funding Program. Treasury Secretary Janet Yellen approved a plan to provide up to $25 billion as a backstop for the new program.The central bank said that the capital and liquidity positions of the U.S. banking system “are strong” and the U.S. financial system is “resilient.”
The Fed said its board of governors “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.”
Bail out
A different type of QE?
T.A.R.P. Part 2. Same as last time. We had insolvent banks and a war in Afghanistan and Iraq. Rinse-repeat.
So the feds are going to loan money to insolvent banks? Guess that is one way to bail them out without saying they are bailing out. Whats the interest rate on these nit bailout loans? And if the govt has the $, it is taxpayer money.
No accountability at any level - folks we are headed towards a meltdown
Let me gamble my money away so Fed can print money and bail me out even when inflation is running hot. Maybe they'll continue to raise rate and continue to bail people out until it's finally my turn. Such BS
MichaelBenezra This did and will not work to keep depositor money in these banks. I’m pulling my money out tomorrow. They just let Signal Bank fail.
Alas, U.S. Treasury not vaccinated against political contagion.
Gentlemen, start your printers
They work real fast for the rich guys
But everything is totally fine with the banking system..
I tried to get a loan for 2 years and was denied. They mismanaged a bank and get all the loans they need...
🤔🧐
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Silicon Valley Bank crisis will force Fed to cut rates by 100 basis pointsThe Silicon Valley Bank crisis will force the Fed to slash rates by 100 basis points to prevent contagion, market guru says timber001 pivot 韭菜割过了头，割到了自己的手… 'There's a storm a comin'.
Source: BusinessInsider - 🏆 729. / 51 Read more »