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Replying to Avatar bigmarh

The depositors are large Silicon Valley VC backed startups and Crypto companies. Those to me are still large institutions. I wonder when the last time little ol Farmer's United or Coal Workers Bank Of Corbin were bailed out in this way?

There are plenty of banks that have run into this issue, I wonder what their options were for their little ol depositors? I need to do some research but I can't see it being such a big issue...

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j'ai les clés 2y ago

Per Guy LeBas:

The key part here is the Fed agreeing to lend against bonds at par (!) essentially neutering any feedback loop between bank securities portfolio losses and liquidity.

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