The Next Stage Of The Banking Crisis, Commercial Real Estate
Inflection Point
00:00
The Impact of the BTFP Facility on Small Regional Banks
The FDIC has opened up this window, the BTFP, which allows banks that might have large unrealized losses on their bond portfolio to park Treasuries or mortgage-backed securities. And basically, the Fed will lend to them at par. So if they're creating for $0.80 on the dollar today, they can, you know, get $0.100 on the dollar back to meet any deposit outflows. The idea being that the United States would never default on a Treasury. Now, this is different for the case of these small regional banks, right? First of all, they can't use the BTFP facility and this is not a credit extended by the US
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