Banks at a Crossroads Is Your Money Truly Secure -3

4,) Bank Term Funding Program: The banks have borrowed over $107 billion dollars from The Feds since March 2023!!! The banks are exchanging collateral like their insolvent bonds for cash to stay afloat with the Federal Reserve for one year and then they have to pay it back!!! The banks are insolvent.They are kicking the can down the road, More banks are going under!!!

What Is the Bank Term Funding Program (BTFP)? In the aftermath of the collapse of Silicon Valley Bank and Signature Bank in March, 2023, the Federal Reserve created a new program to help troubled regional banks with the hopes of averting bank runs and more widespread financial contagion. The Bank Term Funding Program, or BTFP, is a new form of one-year emergency funding available to eligible financial institutions. These institutions must pledge collateral that the Fed can purchase through its open market operations, such as Treasury securities and other debt obligations. Why Was the Bank Term Funding Program Created? The 2023 collapse of Silicon Valley Bank, quickly followed by the collapse of Signature Bank, spooked the markets. Investors sold bank stocks and flocked to safer investments like bonds. But perhaps the greatest threat was to the regional banking system as a whole, because if depositors had begun withdrawing their funds from banks in unison, they could have triggered bank runs. This would be felt through the economy like a set of falling dominoes, effectively crippling entire parts of the country since rural counties rely on a small number of financial institutions for their deposits and credit.The Bank Term Funding Program is one way the Fed attempted to inject confidence into the banking system and assure depositors that their money is safe. On its website, the Fed confirmed that the Bank Term Funding Program was designed “to help American businesses and households to make sure banks have the ability to meet the needs of their depositors.”