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So, banks don't trust each other's collateral, but the Fed does, and that judgment is more correct?

• deleted 7y ago
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• deleted 7y ago
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• JumpCrisscross 7y ago
  > banks don't trust each other's collateral, but the Fed does, and that judgment is more correct? The collateral is Treasuries. Nothing exotic.
  • SilasX 7y ago
    Then why are banks not trusting that as collateral?
    • whatok 7y ago
      I don't think banks not trusting Treasuries as collateral has ever been raised this week. Banks simply do not have the liquidity to finance transactions in the repo market right now.