Banks borrow $300bn from Fed amidst financial strain.

1 min read
Source: The Guardian
Banks borrow $300bn from Fed amidst financial strain.
Photo: The Guardian
TL;DR Summary

Cash-strapped banks have borrowed around $300bn from the Federal Reserve in the past week, with nearly half going to holding companies for two major banks that failed over the past week, Silicon Valley Bank and Signature Bank. The rest of the money was borrowed by banks seeking to raise cash, likely to pay off depositors who tried to withdraw their money. The Fed's lending programs, particularly the new facility it unveiled on Sunday, enable financial institutions to post bonds as collateral and borrow against them, rather than having to sell them.

Share this article

Reading Insights

Total Reads

0

Unique Readers

1

Time Saved

2 min

vs 3 min read

Condensed

83%

53291 words

Want the full story? Read the original article

Read on The Guardian