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A comment on Big Banks Agree to Historic $30B Deposit Injection in First Republic. Parent comment

Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by lxgr on Friday March 17, 2023 @08:19AM (#35196079)
A 100% haircut would mean that their assets are effectively worthless. I highly doubt that the depositing banks would have done this if that were the case.
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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by bumby on Friday March 17, 2023 @09:11AM (#35196623)
Even if their assets are things like Treasury notes? I'm assuming JPM would get first dibs on those types of assets if First Republic went under, no?
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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by lxgr on Friday March 17, 2023 @10:13AM (#35197358)
Yes, that‘s my point: Even in case of an unprecedented interest rate hike and 10-year treasuries, the haircut due to depreciating asset values would not be 100% but much less.
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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by bumby on Friday March 17, 2023 @10:16AM (#35197392)
Sorry, I misinterpreted your first post but thank you for clarifying.
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