2min chapter

Coin Stories with Natalie Brunell cover image

Danielle DiMartino Booth: Economic Downturn Worse Than '08 Global Financial Crisis? Bank Failures, Consolidations and Fed Pivot

Coin Stories with Natalie Brunell

CHAPTER

The Federal Home Loan Bank System Increased by $475 Billion in One Week

The Federal Home Loan Bank system lent out $311 billion to banks all around the country in one week. It's structured as a government sponsored enterprise like Fannie Mae or Freddie Mac, which means it does not have explicit backing of the US government but has the implicit backing. And that means that banks were on their knees. In fact, you know, right now if you're a small regional bank somewhere,. Do you have an account with the Federal Reserve is that how it works?

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