So what is BoA and JP Morgan's role? They are supposedly part of the deal.As far as I've seen, they play no part.
SVB still has junk AFS
AFAIK, not junk, just Treasuries worth less than what they paid.
I bet SVB is trading junk AFS for good ASF with BoA and JP Morgan plus cash from the Fed to make BoA and JP Morgan whole.
None of that is needed. The bank run is over. The FDIC will look for a buyer.
I think the BoA and JP Morgan involvement came from the title of the article and a quote from the article:
Sen. Bernie Sanders, I-Vt., insisted that "If there is a bailout of Silicon Valley Bank, it must be 100 percent financed by Wall Street and large financial institutions." Plus detail from another poster that named BoA and JP Morgan. I originally replied to that poster and you replied to my reply. Confusing enough? This crap happens when government is not transparent and specific. It leads to me running through scenarios. I still don’t understand how a single buyer fixes SVB. There’s too much weakness to assume. SVB was technically insolvent in September. It’s only gotten worse. That leads to another set of questions about how regulators let that go and why the problems were not fixed earlier. You also have to consider Yellen and Powell have to deal with 20 other banks teetering on insolvency now that the cat is out of the bag. There’s no hiding it. Cash is only a temporary fix unless the Fed drops interest rates. Wait until inflation numbers come out this week and the next fomc meeting.
I need to go to bed and adjust to DST. Good night & talk to you later.