blockchain tech (all cryptos basically) allowing A->B payments w/o a middle man. browsing/shopping from a near infinite number of participants for the best borrowing/staking/lending w/o a middle man thru smart contracts, etc... All these are systems in place paying yields to users, scam or not.
Of course. This has never been an issue. However some people think incorrectly that the federal reserve gives money to banks . Of course they don't do that.
The Fed is offering to evaluate securities at par for collateral purposes. The bank will still own the encumbered securities unless they default on their loan. In that case the Fed would recover the money lent once the securities either went up in value or matured, plus any interest received on the loan. The Government, of course, is not in the business of maximizing gain as is the private sector. I agree that the Fed's willingness to loan at Par against collateral might cause banks to lose less money than they might otherwise lose were they forced to liquidate their securities at an unfavorable time. I suppose the government offering to loan against the securities at par could be considered a "subsidy" of sorts.. Regardless, banks that manage their money poorly will pay a price for poor management in the form of having to borrow more than they otherwise would have. And if they manage it so poorly that they become insolvent, as apparently SVB did, they'll be shut down and forced to undergo resolution.