How the Fed may become insolvent and worsen future crises: Wells Fargo - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 51%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

Wells Fargo lays out a plausible scenario where the Fed becomes insolvent — and breaks down the catastrophic effect that would have on the bank's ability to handle future crises

solvency risk is not something that investors worry about a lot, if they do at all.

Since March, the Fed has added a significant amount of higher-risk assets to its balance sheet. These include corporate bonds, municipal bonds, and loans to small business through the Main Street Lending Program. These all have default risk — and according to the Fed, the size of holdings could grow from $200 billion currently to as much as $2.3 trillion if necessary.

"Although the technical insolvency of the nation's central bank may not have tremendous economic consequences, falling into a negative net worth situation could have significant political implications for the Federal Reserve," Bryson said. To be sure, more than half of the Fed's $7 trillion balance sheet is made up of assets with zero credit risk. The $4.3 trillion in Treasuries is backed by the full faith and credit of the US government, and as such does not face the prospect of default. The fact that investors are still buying Treasuries with near-recordEven other large components of the balance sheet carry strong immunity.

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

Wells Fargo? That bastion of honesty and fair dealing? That Wells Fargo?

I like the words Fed and insolvent in the same sentence

será que começou?

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 729. in KR

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Welcome to the future of dining halls: reservations, delivery, and robots - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Awesome!
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

Senator Durbin requests Fed probe card networks - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. pravi_Bosiljcic Eliminating GREED, a great start.
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

Amazon may invest in Reliance Retail, a key backer of JioMart - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. In case we've forgotten, earlier last year Amazon has a stake in Adiya Birla's More. Soon to be total domination of India's online retail. India should know he is in IP violations. He is using mine illegally. What you see, Amazon sad site, is illegal use of my IP. He never came to it. Amazon should be sued by anyone for making false impressions about intellectual property. What he has, was acquired by German communists with spying. Legally he could not implement that.
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

TIMELINE: TikTok may be bought by Microsoft after huge pressure from Trump administration - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. People will end public deception media Bloomberg.
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

Why the housing market may not see a V-shaped recovery - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. CLICK BAIT POST
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »