|
| Fair critique but now you are setup with the Fed. You probably always should have been as a contingency. We are too. Bank Term Funding Program in 2023 was a successful lender of last resort program. Right or wrong, those BTFP loans were below market value on collateral and did work.
Add: on the SVB thing... their portfolio was so aggregiously reckless with those long term fixed rate loans... honestly they needed to fail. A lender of last resort there would have been moral hazard. I view that role as to prevent systemic failure, not individual bad bank screw up. The FDIC ought not to have insured over limits either. More moral hazard.
Edited by reformedbanker 12/28/2025 18:11
| |
|
How money is created
