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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by heartbreak on Sunday March 12, 2023 @08:23PM (#35128781)
The wealth didn’t evaporate, it’s just tied up for a long time. The actual costs to the FDIC will probably be pretty low for SVB’s deposits.
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Re:Joint Statement by the Department of the Treasury, Federa... by kgwgk on Sunday March 12, 2023 @08:28PM (#35128844)
The cost may be pretty low but not because the FDIC will somehow get the nominal price for those bonds. They are not worth more than what they are worth. (On the other hand, they are worth more now than they were on Thursday.)
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Re:Joint Statement by the Department of the Treasury, Federa... by heartbreak on Sunday March 12, 2023 @08:33PM (#35128891)
Worst case scenario they’ll probably end up sold to the Fed and held till maturity like all the MBS the Fed bought during the pandemic.
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Re:Joint Statement by the Department of the Treasury, Federa... by kgwgk on Sunday March 12, 2023 @09:05PM (#35129180)
If I'm not mistaken those were bought at "reasonable prices" - not at par.
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Re:Joint Statement by the Department of the Treasury, Federa... by pclmulqdq on Sunday March 12, 2023 @09:41PM (#35129573)
The FDIC will probably just hold them to maturity and go running to congress if they need more liquidity at any time.
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Re:Joint Statement by the Department of the Treasury, Federa... by Consultant32452 on Sunday March 12, 2023 @09:25PM (#35129413)
There would have been a massive drop in asset prices for the companies impacted by losing their deposits.
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