Of course the FED has that power. The FDIC has no say even if the money flows through them. The law gives them no powers of the sort.
Is this over? That is a dangerous question. The larger global pensions funds might say no. The larger financials are going to be reporting losses as well in some of their bond/asset holdings.
The reality is all of this is very crazy yet.
It might take us a few days of watching and discussing to see any possibly imputes for further failures.
Meanwhile what if the FED and treasury are insisting on higher rates to bring some of the inflation down and using potential failures to boost the money supply for economic growth…?? what I just wrote is the opposite of stagflation. It is possible.
I guess I did not need to wait a few days for a dynamic to appear in my mind.
Wow…flush with cash and lower inflations the markets could rise from here. Not a new bull market mind you. The timing would be excellent for me as I sell NFTs into it.
The stockbroker clienteles would be avoiding bonds to a larger degree. Possibly while chasing other asset classes, perhaps.
This may be an interesting and needed twist and turn in normalizing the US economy and banking system.