Here's What The Latest Bank Bailout Does, And Why The Treasury Is Quietly Freaking Out

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by Tyler Durden
Monday, Mar 13, 2023 - 10:11 AM

And so we got our "credit event" and the Fed panicked, as did the Treasury, and the FDIC...

While we reported the big picture of the latest bank bailouts by the Big Three regulators, what is most notable is today's latest entry to the Fed's alphabet soup of bailout facilities, the BTFP lending program which, in theory, "will make loans on high quality collateral" (by which the Treasury simply means collateral that has already incurred mark-to-market losses of over $600 billion; more below).

The BTFP - or as we call it, the Buy The Fucking Pivot - is basically another bank bailout facility because no matter what you may read elsewhere (as the propaganda media now scrambles to avoid using words such as "bailout" in favor of the far less Democrat snowflake-triggering "backstop"), one which gives banks full credit for unrealized losses on their Held to Maturity Books, losses which as we showed last week amount to nearly a quarter trillion dollars at just the big 4 banks.