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- Fed’s Balance Sheet Plunges by $230 Billion in Six Weeks, Biggest Such Plunge in 14 Years
Fed’s Balance Sheet Plunges by $230 Billion in Six Weeks, Biggest Such Plunge in 14 Years
by Wolf Richter Wolf Street
Massive gyrations on the balance sheet after FDIC’s take-down of First Republic, sale of its assets to JP Morgan, and FDIC’s loan to JPM.
Today we were served a special spectacle on the Federal Reserve’s weekly balance sheet. Total assets dropped by $59 billion in the week, and by $230 billion in the six weeks since peak bank bailout, to $8.50 trillion, as QT continued on track with a big Treasury securities roll-off, and as First Republic, the FDIC, and JP Morgan were splattered all over this balance sheet.
Looking at total assets with a magnifying glass to see the details of the banking crisis: