- Currently, bank deposits are insured for an unlimited amount, although the official limit remains at $250,000.
- Banks can now borrow from the Fed by using securities that have lost value at their original price. To explain this program in simpler terms, if a bank bought a bond for $1000 and it has since dropped in value to $700, the bank can still borrow $1000 using the $700 bond as collateral.
- The special borrowing program will be in effect for one year.
Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.