[UnpossibleJim]

So, first off, I am not very literate when it comes to the comings and goings of banking procedures, so forgive me if this is a dumb question.

Would an incident like this make other banks shore up their defenses about this sort of thing happening to them, or will more banks fall due to market conditions in general?

[tinco]

Well a defense might be to increase their liquidity by selling those treasury bills, which would drive their price even lower, making other banks also be illiquid on paper.

So yeah I imagine all the banks nervously looking at eachother. Who is going to pussy out the first and cause them all to tumble over.

[adrr]

Fed could buy it and set a price floor on it.

[opportune]

Yes, this may trigger many banks to sell off long term underwater assets which would further reduce their prices, incentivizing further sales. It can also trigger more bank runs that put time pressure on banks to do this. Bad situation overall

[e-clinton]

Both would be my guess. I’m expecting more smaller banks to fall.