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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 unyttigfjelltol on Monday March 13, 2023 @07:18AM (#35134114)
> Can they buy the same bonds that SVB has to patch the hole in their balance sheet?

Unfortunately, in related news, the answer is 'yes', from the new BTFP.[1] I wouldn't say this is wrong but it does seem like the kind of bazooka-brandishing that makes financial-folk panic still more.

[1] https://twitter.com/BenEisen/status/1635061019629289472

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Re:Joint Statement by the Department of the Treasury, Federa... by kgwgk on Monday March 13, 2023 @08:41AM (#35134910)
I don’t thing those loans would be very useful for the bank that buys discounted debt in that exampme. Being able to borrow with “bad” collateral is nice but the main sellomg-point is not needing to recognize losses. If you don’t have unrealized loses to hide it doesn’t help much.
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