Re:Coordinated central bank action to enhance the provision ...
by lazide on Sunday March 19, 2023 @09:30PM
(#35226108)
Kinda right?
A bank which is insolvent/bankrupt but has plenty of cash on hand doesn’t need this, only banks which are both insolvent AND need to recognize that fact because they don’t have cash on hand to meet current withdrawals?
Otherwise they can keep Wil-E-Coyote’ng off the cliff for quite awhile longer as long as they don’t mark to market.
A bank which is insolvent/bankrupt but has plenty of cash on hand doesn’t need this, only banks which are both insolvent AND need to recognize that fact because they don’t have cash on hand to meet current withdrawals?
Otherwise they can keep Wil-E-Coyote’ng off the cliff for quite awhile longer as long as they don’t mark to market.