> If the public sector manages the finances, as is the case with this scheme, I think the program might not work like you think? Beyond the initial decision to

> If the public sector manages the finances, as is the case with this scheme, I think the program might not work like you think? Beyond the initial decision to create the program, no one at the Fed exercises significant discretion. It's open to essentially all American banks, most of which are private businesses with the usual profit motives, whose managers decide when to borrow and how to use the proceeds. If such a bank gets in trouble, then its managers now have slightly greater incentive and ability to try gambling their way out, since their shareholders get all the upside and the Fed gets some of the downside. https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20230312a1.pdf https://www.federalreserve.gov/newsevents/pressreleases/file...