3.17.23
Regulators took extraordinary steps last weekend to make additional funding available, via one-year loans, for financial institutions that hold Treasuries and mortgage-backed securities on their books that have tumbled in value as the Fed has increased interest rates. The Treasury will provide $25 billion in credit protection as it did during the pandemic, this time through the newly created Bank Term Funding Program (BTFP), out of concern for depositors and ‘focused on trying to meet their needs.’