Quick Take
An update since futures opened last night
SVB depositors will have access to all of their money on March 13. The Signature Bank closed — all depositors will be made whole. Fed will make available additional funding to eligible depository institutions. First Republic Bank is down 52% pre-market, while Credit Suisse is down another 10% as contagion spreads. The new bailout acronym is called “Bank Term Funding Program“. The solution is to provide banks with an alternative to liquidate their bond holdings when they need to raise liquidity to meet outflows of deposits. Bitcoin went above $22,000, while gold approaches $1,900
Bank Term Funding Program: (Source: Federal Reserve)
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