[fairity]

I wonder if a bank run (triggered by this news) could force them to liquidate that portfolio.

[slt2021]

liquidating HTM will mean bankruptcy, because bank will realize mark to market losses on MBS that exceed equity.

They will hold onto these MBS with their "Diamond Hands" (r) and hope for Fed pivot.

Even if bank will go bankrupt and sold to another buyer - new owner will still have to hold onto these MBS

[JumpCrisscross]

> will hold onto these MBS with their "Diamond Hands" (r) and hope for Fed pivot

No, they’ll hold them to maturity and get back their principal.

[cameldrv]

With what funds are they going to hold them to maturity? Are the depositors going to be willing to finance these bond purchases with zero interest deposits indefinitely when they could be earning more interest at another bank?