2 ms·
The upside should be (and hopefully is) a good interest rate on that deposit. Let's say Fed Funds plus 5%.
by credit_guy 4y ago
The upside should be (and hopefully is) a good interest rate on that deposit. Let's say Fed Funds plus 5%.
- pjc50 4y ago.. does anyone have any evidence for this? It's not in the press release.
- chii 4y agoThese banks that would've gotten a run could accept a loss here, as long as it's in the future and can be funded. It's better than a run.
- eloff 4y agoI read in one news article that they got the same terms as all the other depositors at FRC, so the interest rate is negligible. Obviously the real benefit to them is calming the panic in the banking sector, which is harmful to all of them.