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Management of a small bank told me this. Aside from targeting "crypto" beyond the scope of the law (Operation Chokepoint 2.0), he's also mad that responsible banks who wisely avoided long dated HTM securities are being punished by withdrawals as depositors flee to large banks for safety. They did everything right but only the big banks benefit from the moral hazard of these bailouts.

antifragilemoney 2y ago

The climate has always been bitcoin unfriendly for the last 7+ years. Clerks trained in most countries to be wary of mentions of bitcoin related transactions. Oeperation chokepoint 2.0 will just probably break the few select allowed services and exchanges that existed last 5 years.

in terms of Balance Sheet management...hmmm something fishy? Avoiding long dated HTM, logic would follow they instead opted for much shorter term duration which didnt get rekt as bad. So even with deposit outflows, having to sell shorter terms bites, itsntot nearly as bad as the entire peer class.

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