With the FDIC auction underway, the Silicon Valley Bank Crisis may either be over or raging uncontrollably when you read this. I lean towards the scenario of excitement winding down, but at the same time, I know literally nothing about the quality of SVB’s asset book. Rather than speculate, I just want to point out what I see as key: credit market conditions (including wholesale funding) are the only thing the Fed really cares about. Even if one worries about other large regional banks, credit investors — and existing lending facilities for banks, like the discount window and FHLB advances — can pump money into the back door of a solvent bank faster than a bunch of people who read stuff on Twitter can withdraw it out the front....Bond Economics
With the FDIC auction underway, the Silicon Valley Bank Crisis may either be over or raging uncontrollably when you read this
Brian Romanchuk
Biden people trying to do it without an appropriation… we’ll see…
ReplyDeleteFDIC reportedly has about 10B in its fund and SVB 160B in deposits…
Statement says they are going to make up the difference by increasing bank fees…
That’s a lot of fees…
Trying to avoid having to deal with gop Congress….