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Pod 19: Silicon Valley and Signature Bank Collapse, Regional Bank Crisis, The Fed's Response, CPI, and New Fed Policies for Markets

Unusual Whales

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The Perfect Storm Never in History Has Banks Had to Pay Up to Maintain Assets

Banks are allowed to mark assets, 10-year treasuries, 30-year bonds, et cetera. If things get bad and they have to access these held to maturity securities and start selling them, then it opens up the whole pool of assets that are quote-unquote held to maturity of a certain type to being remarked and revalued. That is the dynamic under the hood that really kind of became an issue here all of a sudden for some of these banks. And honestly, that's why there's potentially a lot more out there that is not marked to market that if things get ugly might have to be. It's part of what actually have trouble in that Home

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