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Replying to Avatar Lyn Alden

Fun fact.

Many US banks hold long-duration Treasuries that are currently underwater. They don't have to mark their unrealized losses to market because they plan to hold them to maturity.

This works as long as they don't have a highly-volatile deposit base that pulls money out and forces them to sell their Treasuries at an inopportune time and lock in a loss and thus risk insolvency.

https://void.cat/d/AXU6Hi5Z4LghCxCGA6yzNY.webp

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๐–‹๐–Ž๐–†๐–™๐–‰๐–Š๐–“๐–Ž๐–Š๐–— (ยฏ`โ—•โ€ฟโ—•ยดยฏ) 2y ago

I doubt they hold that much treasuries to begin with. They probably have less than 3% in reserves.

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