Unveiling a little-known intervention, the Federal Reserve injected $152 billion into big banks in March 2023, surpassing aid provided during both the 2008 and 2020 crises. As regional banks, grappling with precarious balance sheets, increasingly turn to the discount window for support, questions arise about the Fed’s strategy and the future of banking stability.
I bet 99.9% of people don't realize the Federal Reserve lent big banks $152 billion in March 2023 to postpone another banking crisis/recession because it was too soon.
The amount they lent was more than 2008 & 2020 combined. t.co/nPiFDNArPe pic.twitter.com/3gCZQGZyzw
— Financelot (@FinanceLancelot) April 26, 2024
California Banks are most exposed 😳 pic.twitter.com/ufqUyUVlUb
— Win Smart, CFA (@WinfieldSmart) April 26, 2024
🚨BREAKING: FED DISCOUNT WINDOW 📈
FED DISCOUNT-WINDOW LOANS $7.02B IN THE WEEK
*The latest data suggest that mostly regional banks are using the discount window as they are the ones with the worst balance sheets. pic.twitter.com/KbqGFjQ16J
— The Coastal Journal (@1CoastalJournal) April 25, 2024
U.S. Banks finished the year with almost $400 billion of unrealized losses on held-to-maturity assets pic.twitter.com/1JV7N8UCqe
— Win Smart, CFA (@WinfieldSmart) April 25, 2024