Fed Loans Surpass $100B as US Banking Crisis Persists

The Federal Reserve has initiated its Bank Term Funding Program (BTFP), worth around $100bn, to try to keep the embattled US banking system afloat. The BTFP was created in March to give additional funding to eligible depository institutions to help assure banks have sufficient resources to meet depositor needs. The program enables banks to “receive par for their devalued assets in secret,” according to market analyst Joe Consorti. He added that “hidden risk is spreading.” Big banks and Wall Street are thought to be wielding strong influence over federal regulators, which could be account for regulators’ come-down on cryptocurrencies. Crypto is viewed as a clear threat to the banking system, posing the biggest major threat to their profit margins ever to emerge.