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Is there any reason the FDIC itself cant just hold onto the bonds until they mature? The federal government doesnt need liquidity the same way a bank does, they
by Me1000 4y ago
Is there any reason the FDIC itself cant just hold onto the bonds until they mature? The federal government doesnt need liquidity the same way a bank does, they wouldn't need to sell them for less than face value.
Edit: this is actually a serious question, if someone knows the actual answer.
I understand that ideally the government wouldn't want to hold onto the bonds, but is there any statutory (or other real) reason why they would _have_ to sell them at less than face value? If you could guarantee 100% of deposits could be returned by just holding onto the bonds until maturity, that seems like a worthwhile trade.