Just as the problem banks, SVB, Signature, et-al have the Unrealized Losses problem, so does the FED - well over $1 T.
"Borrower Eligibility: Any U.S. federally insured depository institution (including a bank, savings association, or credit union) or U.S. branch or agency of a foreign bank that is eligible for primary credit (see 12 CFR 201.4(a)) is eligible to borrow under the Program."
I wouldn't have a problem if Credit Suiss did qualify. Because the BTFP requires as collateral securities that are already fully backed by the US government.
My only concern is how much the Federal Reserve has available for the BTFP program.
Just as the problem banks, SVB, Signature, et-al have the Unrealized Losses problem, so does the FED - well over $1 T.
They are a Swiss bank.
Their US banks don’t account for a huge part of their assets.
I always thought it would be the German banks that went down first. But, Swiss banks are close enough.
They will hold on until Friday. It will be another “tense” weekend.