Yeah, but there’s not been any allocation of Fraud, has there?
The issue here is that banks were forced to buy assets at near zero yields to cover deposits, and now the Federal Reserve has jacked up rates so fast, that those assets have paper losses.
Liquidating them all at today’s market rates to pay depositors realizes those losses.
Correct. I haven’t seen anything that indicates fraud so far. I was just saying that if they find anything fraudulent it makes everything proceed much slower.
And the Federal Reserve has jacked rates up to supposedly battle Bidenflation. World News Tonight mentioned the rate increases part in this without really covering the why on the rates. But rates did also get a mention in the following jobs report story,
“The issue here is that banks were forced to buy assets at near zero yields to cover deposits”
Treasuries might fit that description but I’ve never seen a current rule that forces banks to buy them. That was a rule beginning in 1864 but I think it ended in 1913.
And if SBV had kept to short term Treasuries they would have been less exposed.