A Puzzling Bailout and A Perilous Economy
WSJ Opinion: Free Expression
00:00
The Regulation of Treasury Securities
Banks loaded up on luxuries and MBS, longer-dated treasuries and mortgage-backed securities. Then when interest rates started going up, they didn't hedge the risk. They were still being held at book value, even though their market value was significantly less than their book value. When they started booking those losses, they didn’t have enough capital to withstand it.
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