“Fed’s New Backstop Shields Banks From $300 Billion of Losses”
March 14, 2023
“…There were some concerns that the taxpayer could now be on the hook for covering losses suffered by banks and that questionable management and investments were now being protected by the government.
Banks, for example, now can limit accepting losses or selling assets given they have access to easier funding. US banks were sitting on more than $300 billion of losses on securities they planned to hold to maturity at the end of 2022…
“If the Fed is now backstopping anyone facing asset/rates pain, then they are de facto allowing a massive easing of financial conditions as well as soaring moral hazard,” said Michael Every and Ben Picton, strategists at Rabobank…”
https://finance.yahoo.com/news/us-says-svb-deposits-safe-230714841.html
No bailouts or bail-ins for that matter. Let this big banks fall. That will teach them not to mismanage money. Do your banking at smaller local banks. It’s worth it in the long run.