Posted on 04/17/2024 2:39:05 AM PDT by RomanSoldier19
-A year after Silicon Valley Bank's failure, less than half of U.S. banks have established borrowing capacity by pledging collateral at the Federal Reserve's emergency lending facility, according to Fed data released on Friday.
That's despite a crescendo of calls from financial regulators for banks to make sure they can access the Fed's discount window quickly if trouble arises. But the data also showed some real progress, with an increase in the number of banks signing up and a jump in the amount of total collateral pledged.
SVB's inability to access the window in March of last year in the face of massive and rapid withdrawals by its uninsured depositors contributed to the bank's sudden collapse.
The resulting stress that rippled through the broader banking system revealed a similar lack of preparedness at many of SVB's peers, and prompted authorities to stand up a separate but temporary lending facility to meet additional liquidity needs. That facility - the Bank Term Funding Program - ceased loan-making operations last month.
(Excerpt) Read more at msn.com ...
It is in the Politicians pockets.
Banks borrow money “very short term” from the Fed. The Fed Reserve is NOT a long term lender.
If bank goes to window at the Fed for 2-3 months, the Regulators are asking questions.
Don’t worry. The Fed has a plan.
Don’t worry, there’s an endless supply. The Treasury will just print trillions more dollars...like they do now. What’s wrong with that? Inflation, you say? What’s that?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.