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A comment on FDIC Establishes Signature Bridge Bank, N.A., As Successor to Signature Bank. Parent comment

Re:FDIC Establishes Signature Bridge Bank, N.A., As Successo... by ejdyksen on Sunday March 12, 2023 @10:00PM (#35129782)
Fair. Thought you were talking about making SVB depositors whole.

I’d call the BTFP a mechanism to stabilize the banking system in the US, given rising interest rates. I guess I don’t care as much about the semantics, though.

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Re:FDIC Establishes Signature Bridge Bank, N.A., As Successo... by pishpash on Sunday March 12, 2023 @11:32PM (#35130649)
It wipes out losses accrued up to March 12, 2023 on eligible securities, for one year. It's taxpayer funded. Terms are super generous: only a 10bp premium. It's at least a bailout for one year. It may or may not get extended.
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Re:FDIC Establishes Signature Bridge Bank, N.A., As Successo... by slv77 on Monday March 13, 2023 @08:12AM (#35134599)
It also works against the Federal Reserves stated policy of shrinking their balance sheet due to inflation.
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Re:FDIC Establishes Signature Bridge Bank, N.A., As Successo... by pishpash on Monday March 13, 2023 @07:38PM (#35144889)
I do think it's somewhat clever. It basically lets the private banking sector control the pace of QT. If liquidity dries up somewhere in the system it does a one-year targeted QE.
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