Block Journal
No Result
View All Result
  • Login
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
Magazine
Newsletter
  • Trending Now
  • Bitcoin
  • Altcoin
  • Ethereum
  • Analysis
  • Blockchain
  • Metaverse
  • NFT
  • DeFi
  • Web3
  • GameFi
  • ICO
  • Legal
  • Security
Block Journal
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
No Result
View All Result
Block Journal
No Result
View All Result
  • News
  • Crypto
  • Markets
  • Investing
  • Videos
  • Charts
Home News

US Fed announces $25B in funding to backstop banks

News Room by News Room
March 13, 2023
in News
Reading Time: 2 mins read
0 0
A A
0

Hot on the heels of several United States bank collapses, the Federal Reserve Board has announced $25 billion worth of funding aimed at backstopping banks and other depository firms.

The funds would ensure that eligible banks would have enough liquidity to cover the needs of their customers during times of turmoil.

@federalreserve announces Bank Term Funding Program (BTFP) to support American businesses and households, assure banks have ability to meet needs of all their depositors: https://t.co/JIMjkooIDV

— Federal Reserve (@federalreserve) March 12, 2023

In a Mar. 12 statement, the Federal Reserve Board said it created a $25 billion Bank Term Funding Program (BTFP) offering loans of up to one year to “banks, savings associations, credit unions, and other eligible depository institutions.”

Eligible firms must pledge U.S. Treasurys, agency debt and mortgage-backed securities or other “qualifying assets” as collateral, which will be valued “at par” — the price at which the assets were issued.

The Fed added it would be an “additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress.”

Excellent, in my opinion.

Funding is at 1-year OIS (basically 1-year market-implied Fed Funds) plus a meagre 10 bps spread on top.

1 year guaranteed liquidity at Fed Funds plus 10 bps posting collateral deep in the mud but valued at par.

Quite the deal.

5/ pic.twitter.com/3BxUC3weyE

— Alf (@MacroAlf) March 12, 2023

It comes as Silicon Valley Bank (SVB) announced on Mar. 8 a significant sale of assets and stocks aimed at raising additional capital, which panicked depositors and triggered a run on the bank. 

Related: U.S. authorities preparing ‘material action’ to curb SVB contagion

The bank run contaminated the crypto space as stablecoin issuer Circle disclosed it had $3.3 billion in SVB, causing further panic and resulting in its stablecoin USD Coin (USDC) losing its peg to the U.S. dollar.

The new program comes on the same day the Fed announced that U.S. Treasury Secretary Janet Yellen approved actions for the Federal Deposit Insurance Corporation (FDIC) to make SVB depositors whole and that regulators closed New York-based Signature Bank, citing systemic risk.



Read the full article here

ShareTweetSharePinShareShareSend

Related News

Asian stocks rise on US debt ceiling deal
News

Asian stocks rise on US debt ceiling deal

May 29, 2023
Temasek slashes compensation for execs responsible for its $275M FTX investment
News

Temasek slashes compensation for execs responsible for its $275M FTX investment

May 29, 2023
ByteDance and CNPC take over Hong Kong offices vacated by foreign companies
News

ByteDance and CNPC take over Hong Kong offices vacated by foreign companies

May 29, 2023
MiHoYo strives to capture China’s gaming flag from Tencent
News

MiHoYo strives to capture China’s gaming flag from Tencent

May 29, 2023
Another dormant Ethereum wallet reawakens after 8 years, moving millions
News

Another dormant Ethereum wallet reawakens after 8 years, moving millions

May 29, 2023
China’s economy loses steam as concerns mount over Covid recovery
News

China’s economy loses steam as concerns mount over Covid recovery

May 29, 2023
7 presidential candidates have dropped clues about their crypto stance
News

7 presidential candidates have dropped clues about their crypto stance

May 29, 2023
Lex in depth: the staggering cost of a green hydrogen economy
News

Lex in depth: the staggering cost of a green hydrogen economy

May 28, 2023
Turns out, it’s pretty difficult to insure crypto users and platforms
News

Turns out, it’s pretty difficult to insure crypto users and platforms

May 28, 2023

Discussion about this post

Latest News

US debt deal passage in Congress would trim 2024 GDP by just 0.1% – Goldman Sachs

US debt deal passage in Congress would trim 2024 GDP by just 0.1% – Goldman Sachs

May 29, 2023
US lawmakers met Fed, FDIC to discuss Silicon Valley Bank’s collapse – Coindesk

PwC Australia puts nine partners on leave, overhauls board amid tax leak scandal

May 29, 2023
TikTokker mortgages house for $500K to buy XRP, now losing money

TikTokker mortgages house for $500K to buy XRP, now losing money

May 29, 2023
Mask Network (MASK) price is up 10% today: Here’s why

Mask Network (MASK) price is up 10% today: Here’s why

May 29, 2023
Indian Crypto Exchanges Are in Survival Mode, Trying to Extend Their Runways

Indian Crypto Exchanges Are in Survival Mode, Trying to Extend Their Runways

May 29, 2023
ADVERTISEMENT

Popular

  • EU states back ban on destruction of unsold clothing

    EU states back ban on destruction of unsold clothing

    0 shares
    Share 0 Tweet 0
  • Why the PBA Is Putting Bowling Awards On-Chain With Avalanche NFTs

    0 shares
    Share 0 Tweet 0
  • Bitcoin Climbs Past $27.4K but Remains in Holding Pattern as Investors Continue Their Debt Limit Vigil

    0 shares
    Share 0 Tweet 0
  • NZD/USD Price Action: Bears are breaking down structure, eye an extension

    0 shares
    Share 0 Tweet 0
  • RBNZ’s Orr: Committee was confident in the level of restrictiveness of interest rates

    0 shares
    Share 0 Tweet 0
Block Journal

Block Journal is the world’s leading source in blockchain news and updates. Follow us to stay up-to-date with all you need to know in web3.

LEARN MORE »

Recent Posts

  • US debt deal passage in Congress would trim 2024 GDP by just 0.1% – Goldman Sachs
  • PwC Australia puts nine partners on leave, overhauls board amid tax leak scandal
  • TikTokker mortgages house for $500K to buy XRP, now losing money

Trending Topics

Altcoin Analysis Bitcoin Blockchain Commodities Crypto DeFi Ethereum Forex Futures GameFi ICO Investing Legal Markets Metaverse News NFT Security Stocks Uncategorized Videos Web3

Get Informed

The most important crypto and finance news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • About
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

Copyright © 2023 Block Journal - Created by Sawah Solutions.

No Result
View All Result
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine

Copyright © 2023 Block Journal - Created by Sawah Solutions.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.