by Summary:
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
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
NewDealdemocrat writes The snooze-a-than in jobless claims continues; what I am looking for in tomorrow’s jobs report
Bill Haskell writes Monthly payments could get thousands of homeless people off the streets
Angry Bear writes A Doctor at Cigna Said Her Bosses Pressured Her to Review Patients’ Cases Too Quickly
Steve Roth writes How Did Under-40s Get So Much Richer During Covid?
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