Don't Worry !! Be Happy !!

US Treasury, Federal Reserve and FDIC in a joint statement announced decisive steps to protect depositor's money.

1. Depositors will have access to all their money starting Monday, March 13.

2. FDIC will complete the resolution of SVB Bank and any losses associated with the resolution will NOT be borne by the tax payer. However, Shareholders and Unsecured Debt holders will not be protected.

3. A similar resolution was announced for Signature Bank (assets of $ 110 bn) which closed on Sunday.

4. A separate additional funding facility was made available - " Bank Term Funding Program (BTFP)" - to eligible depository institutions to help banks to meet the funding needs of all their depositors.  The facility will offer loans of upto 1Y pledging US Treasuries, Agency Debt, MBS and other qualifying assets. These assets will be valued at par.

5. Treasury made available $ 25 bn from the Exchange Stabilization fund as a backstop to BTFP. 

The risk sentiment recovered with S&P futures up 1.87%. DXY continues to decline while short dated Treasuries continue to rally.