Re:US banks have $620B of unrealized losses on their books
by JumpCrisscross on Friday March 31, 2023 @01:48PM
(#35390553)
> Fed has also agreed to buy the worthless bonds from banks
Not worthless, worth less. The Fed has always let banks borrow against Treasuries at the discount window. The discount is to their fair market value. They created a new mechanism, the BTFP, which lets banks borrow against the face value of their Treasuries at a higher rate [1].
Not worthless, worth less. The Fed has always let banks borrow against Treasuries at the discount window. The discount is to their fair market value. They created a new mechanism, the BTFP, which lets banks borrow against the face value of their Treasuries at a higher rate [1].
[1] https://www.federalreserve.gov/newsevents/pressreleases/mone...