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A comment on America’s banks are missing hundreds of billions of dollars. Parent comment

Re:America’s banks are missing hundreds of billions of dollars by petrocrat on Wednesday March 22, 2023 @04:25AM (#35258273)
> Does the government require banks to buy long-term treasuries?

Yes, there are a number of banks that have "Primary Dealer" [1] status which confers to them some benefits, but also makes them legally obligated to make some minimum number of winning bids on government treasury auctions. See the section under "Expectations & Requirements" in the link. Probably the most quantifiable requirement is they have to maintain a minimum of 0.25% market share in winning Treasury bids: "Maintain a share of Treasury market making activity of at least 0.25 percent."

[1]: https://www.newyorkfed.org/markets/primarydealers

[ Parent | on HN ]
Re:America’s banks are missing hundreds of billions of dollars by SideQuark on Wednesday March 22, 2023 @09:59AM (#35261071)
Of the over 4000 banks in the US, only around 20 are Primary Dealers.
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Re:America’s banks are missing hundreds of billions of dollars by balderdash on Wednesday March 22, 2023 @10:24AM (#35261497)
The answer to the parents question is no. While most of the primary dealers are banks these days, they have nothing to do with the conversation at hand, or SVB and it’s problems
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Re:America’s banks are missing hundreds of billions of dollars by AnimalMuppet on Wednesday March 22, 2023 @12:33PM (#35263565)
There are a number of banks that are Primary Dealers, but it's a fairly small list. SVB wasn't on it. So SVB, in particular, was not required to buy long-term treasuries.
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