: New Fed bank facility could see up to $2 trillion of usage, JPMorgan analysts say

The Federal Reserve’s new facility set up after the collapse of two U.S. banks last week could see up to $2 trillion of use, according to a new analysis.

The Fed last weekend set up a lending program called the Bank Term Funding Program. What’s unique about it is that banks are allowed to pledge collateral at par, at a time when those securities are trading at a loss due to the surge in interest rates over the last year.