Crypto Update | The Fishy Story Behind the Collapse of Silvergate, SVB and Signature Bank
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The Bank Term Funding Program Is a Better Deal for the Banks
The US Central Bank's solution is to once again become the lender of last resort. The Bank Term Funding Program, or BTFP as it's called, is similar to pass banking system rescues but actually is easier for them than past incarnations. It works like this: Your depositors are pulling their withdrawals at a slow but increasing rate and you are quickly running out of liquid capital to pay them. But today you go and take, say, 10% of your US Treasury holdings to the Bankterm Funding Program and get the full dollar value that you paid for those assets as a loan in one year.
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