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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by baq on Sunday March 12, 2023 @10:56AM (#35120749)
By now all the liquid assets are already sold. The question is what about the loan book. The most interesting development would be FDIC making offers to the top 5 banks which they can’t refuse, which is what I’m personally hoping for.
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Re:Yellen says government will help SVB depositors but rules... by Vespasian on Sunday March 12, 2023 @11:11AM (#35120948)
Can't the federal government simply take the long term t-bills directly and "close" them now at theoretical face value + interest.
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Re:Yellen says government will help SVB depositors but rules... by janlin1999 on Sunday March 12, 2023 @11:49AM (#35121535)
That would essentially be the government giving money away, since those bills are worth less than face value if sold now.

If that is done, you can imagine many others wanting access to the same deal.

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Re:Yellen says government will help SVB depositors but rules... by worldofmatthew on Sunday March 12, 2023 @12:03PM (#35121743)
That would effectively be no different than a bailout.
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Re:Yellen says government will help SVB depositors but rules... by baq on Sunday March 12, 2023 @12:16PM (#35121965)
I think you’ve reinvented callable bonds.

https://www.sapling.com/7796395/treasury-bonds-callable

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Re:Yellen says government will help SVB depositors but rules... by alpineidyll3 on Sunday March 12, 2023 @11:07AM (#35120886)
In many cases the loans are to depositors (and the debt is questionable). The just thing would be make depositors without debt with svb whole first, ofc there is no system of fairness in finance.
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