corndalorian on Nostr: The loans are for up to a year and up to the value of the collateral put up by the ...
The loans are for up to a year and up to the value of the collateral put up by the banks, which can be treasuries, mortgage backed securities, and other qualifying assets. The idea is that the banks don’t have to sell assets at a loss to fund customer withdrawals. The assumption is that within a year when the loan is due those assets will be sufficiently valued to cover the cost of the loan. What happens if they’re not?
Published at
2023-03-14 03:03:24Event JSON
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