
Regulatory Rollbacks and The Bank Panic of 2023
Lever Time
The Fed's Portfolio Just Wasn't the Fed Portfolio.
The Fed is holding treasuries of various maturities and lots of AAA rated MBS, just like SVB was. The Fed's portfolio, if it were marked to market, would now be insolbents as well. But the Fed's not a business, it doesn't have to maintain a profit so we can kind of get away with this, whereas a private sector institution can't.
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