[college_physics]

If I interpret the action correctly the Fed just granted all banks a giant put option to place any government securities at par for cash whenever interest rates move against them

The only decent thing would be to remove the bank's freedom to (mis)manage interest risk altogether, have sovereign money deposits with the central bank and force private banks actually work for their profits by properly managing risks

[bagels]

It's the only sensible choice with unlimited backstop. It should have already been happening, really because the only difference from last week is that the guarantee was made explicit and we don't have to wonder.