Re:For the First Time, the Fed Is Losing Money
by JumpCrisscross on Monday March 27, 2023 @11:44PM
(#35335625)
> the counter-party doesn't return the money, the FED losses money
Fed loans are collateralized. So the counterparty has to not return the money and the collateral has to lose more money than the bank has reserves. This would be a credit loss, and the law requires the Fed to avoid it. (It has.) This article is about something else.
Fed loans are collateralized. So the counterparty has to not return the money and the collateral has to lose more money than the bank has reserves. This would be a credit loss, and the law requires the Fed to avoid it. (It has.) This article is about something else.