Daniel Lakeland on Nostr: Indefinitely because it needs to remain legally solvent. So if it experiences a bunch ...
Indefinitely because it needs to remain legally solvent. So if it experiences a bunch of outbound payments it may need to borrow reserves or sell assets. If it has some borrowers go bankrupt then it may need to cover things from its investment assets, etc. The Fed basically determines the market price of Bonds held by the bank and hence whether the bank is more or less solvent. If it raises interest rates bonds held by the banks go down in value
Published at
2024-05-18 16:30:20Event JSON
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