The Federal Reserve just dumped $32.6 billion into regional banks to prevent them from failing.
Investors are making their best guesses at which banks are in the worst shape in the S&P 500 and out. But new data point a clearer picture of where the pain is.
Nineteen banks, including PacWest Bancorp (PACW), East West Bancorp (EWBC) and Glacier Bancorp (GBCI), loaded up with $32.6 billion from the Federal Reserve’s new Bank Term Funding Program (BTFP) that offers liquidity, says a report by S&P Global Market Intelligence. This facility helps banks meet withdrawals even as they sit on losses on their investments.
The U.S. set up the BTFP following a number of high profile bank failures to help regional banks access cash without resorting to asset fire sales.
This is insane.
They’re just creating money out of nothing and dumping them into these failed institutions. I guess they feel as if they have to try and manage the total collapse of the banking system, but there is no saving it. The entire system is doomed.
If there was any sanity here, these banks would be allowed to fail because they were mismanaged. This is a horrible abuse but not unexpected considering the Fed is a Jewish criminal financial enterprise.
Jeremiah Babe has more commentary on this Fed bailout.
