Insights

Powell chose financial assets over inflation, but here’s what you need to know

Quick Take

An update since futures opened last night

  • SVB depositors will have access to all of their money on March 13.
  • The Signature Bank closed — all depositors will be made whole.
  • Fed will make available additional funding to eligible depository institutions.
  • First Republic Bank is down 52% pre-market, while Credit Suisse is down another 10% as contagion spreads.
  • The new bailout acronym is called “Bank Term Funding Program“.
  • The solution is to provide banks with an alternative to liquidate their bond holdings when they need to raise liquidity to meet outflows of deposits.
  • Bitcoin went above $22,000, while gold approaches $1,900
Bank Term Funding Program: (Source: Federal Reserve)

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