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Article makes is sound like the banks are capitalized by deposits. But by my understanding this hasn't been the case for a long time? Don't they recapitalize

• ivalm 3y ago
  A lot of regional banks were capitalized by deposits, once SVB collapsed the fed opened additional opportunities for regional banks to be capitalized by the fed. In general, the fed acts as a lender of last resort and charges excess interest rates. First republic had a moment where bigger banks deposited ~$30B into it, but even that was a small percentage of their overall depositor base. As deposits continued to flee they had to rely more on the fed (and then failed).
• aorloff 3y ago
  Banks can borrow from the Fed but at current rates. Problem is that banks are in the business of borrowing at lower rates than they lend. But borrowing from the Fed is at like 5% now whereas most bank books average a return lower than that. They can access cash but at a cost that is the opposite of how a bank’s business should run