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Originally Posted by Bill Bumface
Well that's great news if they can pull it off without taxpayers footing the bill. Any idea how the FDIC would cover this? Is it just that much in their self interests to keep things from falling apart to pony up and prevent a bunch of potential future claims if more banks fail?
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It’s because they’re assessing other banks to raise the cash. Would that standup if a pile of banks failed? Maybe not. But there was obviously contagion with the Signature Bank failure and they wanted to stop that immediately.
To kind of bring this thread back, I think that what this allows is the federal reserve to power through with rate hikes though. The banks can use the bonds at full price, which alleviates that rate risk issue for them.