Macro Musings with David Beckworth cover image

Kate Judge and Peter Conti-Brown on the Lessons Learned from the 2023 Banking Panic

Macro Musings with David Beckworth

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The Fed's Decision to Allow Collateral to Be Taken at Par Value

New conditions for accessing the bank term funding programs. The big exciting development was that collateral could be taken at par value, face value. It certainly is a meaningful shift, but we are also in a sick room stance where post Dodd-Frank regulators have fewer tools than they used to. And so there's not the ability of the FDIC, for example, to broadly offer deposit insurance without going to Congress.

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