The Fed's Bailout of Treasuries

The US banking system as a whole has something like $600 billion plus in unrealized losses on, I think that figure includes Treasuries and also mortgage-backed securities. But that doesn't mean every bank suffered because if they can just hold it, then they can get out of it. So now what did the Fed with FDIC, all the way to what did they do? They wanted to stop contagion. And so they set up this new lending facility, and the deal is they're pledging, you can borrow for up to a year.