Is the COVID a Big Deal for Banks?

The Fed pumped a bunch of money into these banks and then told the banks, well, they didn't tell the banks to do this. And it just so happens that those fixed income products that they were buying were at sort of record on natural highs. The problem with this is that one, all the deposits dry up; two, now that the interest rates are not up, the price of those Fixed Income assets would come way down. So you have huge losses on a levered portfolio and your deposits are nonexistent. Now you're starting to see withdrawals. And frankly, in a lot of cases, there's more losses than equity value. And so the banks are actually insolvent. It

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