Sunday, October 26, 2025

Federal Reserve Promises Additional $25B in Emergency Funding to Safeguard Deposits

The Federal Reserve is making another $25 billion available in backstopping for financial institutions, in an effort to prevent a contagion bank run stemming from the Silicon Valley Bank (NASDAQ: SIVB) fallout.

On Sunday, the Fed pledged $25 billion from the Exchange Stabilization Fund into the newly-created Bank Term Funding Program (BTFP), which will issue one-year loans to “banks, savings associations, credit unions, and other eligible depository institutions” so they don’t have to sell-off securities during liquidity issues.

Qualifying institutions will put up “US Treasuries, agency debt and mortgage-backed securities, and other assets as collateral,” which will be valued at their issuance price. “This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy,” explained the Fed in an accompanying statement.

The move follows a joint decision over the weekend from the Fed, the Treasury Department, and the Federal Deposit Insurance Corporation to take over SVB and backstop depositors’ funds, without the use of taxpayer dollars.


Information for this briefing was found via the Federal Reserve and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

McEwen Copper: The Los Azules Feasibility Study

This Is Why the Gold Run Is Not Done! | Peter Marrone – Allied Gold

P2 Gold: The Multi BILLION Gabbs PEA

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Bond Junkies: Federal Reserve to Start Buying High Yield Corporate Bonds

In the duration of a month, over 16 million of unemployed Americans have been desperately...

Saturday, April 11, 2020, 12:43:29 PM

The Fed May Be Forced To Raise Interest Rates More Aggressively Than Many Expect Based On Rate Comparison

To combat significant and growing inflationary pressures, the U.S. Federal Reserve Board plans both to...

Monday, February 14, 2022, 04:17:00 PM

Senator Elizabeth Warren Criticizes Fed Chair Jerome Powell, Urges Immediate Rate Cut

Following the release of a weak jobs report on Friday, Senator Elizabeth Warren (D-Mass.) has...

Monday, August 5, 2024, 10:54:25 AM

Atlanta Fed’s Econometric Model Releases a More Grim Prediction of Q2 GDP Levels

As previously reported on The Deep Dive, the Federal Reserve Bank of Atlanta, which runs...

Monday, May 18, 2020, 06:43:00 PM

US Treasury Set to Borrow Record $2.99 Trillion in Second Quarter

As the US economy is in the middle of fighting its invisible war against the...

Tuesday, May 5, 2020, 01:22:00 PM