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by JumpCrisscross
1180 days ago
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> have to plan to lose >20% of your deposits in a single day you're not a bank anymore When you sell your liquid portfolio to Goldman at a $2bn loss and then announce non-binding equity commitments, you’re going to lose 20% of your deposits. Now that banks can borrow against the face value of their Treasuries, the same duration problem shouldn’t recur. (That said, we’re stuffing an ungodly amount of crap into the FHL bank.) |
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