The Blubber

Fed discount window borrowing reaches an all time high, higher than 2008.

Data published by the Fed showed US$152.85 billion in borrowing from the discount window — the traditional liquidity backstop for banks — in the week ended March 15, a record high, up from US$4.58 billion the previous week. The prior all-time high was US$111 billion reached during the 2008 financial crisis.

Other credit extensions totalled US$142.8 billion during the week.

EPFR Global data cited by Bank of America Corp. showed money-market funds attracted US$113 billion of inflows, the most since April 2020, while Treasuries drew the biggest inflows since May 2022 with US$9.8 billion in the week through March 15.

Midsize banks are reportedly requesting the FDIC to insure all deposits for two years, per Bloomberg.

The Mid-Size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend insurance on all deposits for the next two years.

“Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures,” the Mid-Size Bank Coalition of America said in a letter to regulators seen by Bloomberg News.

“Notwithstanding the overall health and safety of the banking industry, confidence has been eroded in all but the largest banks,” the group said in the letter. “Confidence in our banking system as a whole must be immediately restored,” it said, adding that the deposit flight would accelerate should another bank fail.

Recently Yellen said: Deposits in US. Banks will be guaranteed only if a systemic risk determination is issued.

Read more: https://unusualwhales.com/news/midsize-banks-are-reportedly-requesting-the-fdic-to-insure-all-deposits-for-two-years