2 ms·
Also these are mark to market losses, and banks typically hold bonds to maturity. The only time this is a problem is if the bank is in need of liquidity and a)
by BaseballPhysics 4y ago
Also these are mark to market losses, and banks typically hold bonds to maturity. The only time this is a problem is if the bank is in need of liquidity and a) reserve ratios are pretty conservative post-2008, and b) the Fed is providing vehicles to support short-term liquidity issues (this reducing the need to sell assets and realize losses). As long as banks, their customers, and/or the media aren't freaking out the client base and encouraging a run, this is a non-issue.