[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  The Coastal Journal [@1CoastalJournal](/creator/twitter/1CoastalJournal) on x 14.6K followers Created: 2025-07-15 21:50:26 UTC If Wells Fargo hadn’t borrowed that $XXX billion in short-term funding—via repo markets and other liquidity facilities—the implications would’ve been severe, and possibly systemic. Here’s the breakdown of what likely would’ve happened: ⸻ 🔻 X. Liquidity Crisis Wells Fargo wouldn’t have had enough cash on hand to meet short-term obligations: •Customer withdrawals could’ve triggered a classic bank run. •Loan and credit line funding might have been delayed or halted. •Interbank trust would have collapsed—other institutions would view WFC as a default risk. ⸻ 📉 X. Forced Asset Sales To raise cash, WFC would’ve been forced to dump securities—most likely long-duration Treasuries or mortgage-backed securities that are underwater due to rate hikes. That would mean: •Realizing billions in losses on paper (HTM and AFS books). •Market contagion—fire sales would hit bond prices systemwide, sparking mark-to-market losses for other banks. ⸻ 💥 X. Regulatory Intervention or Downgrade Without that backstop, the Fed and FDIC may have: •Stepped in early to arrange emergency liquidity. •Pushed for asset restructuring or depositor backstops (e.g., SVB playbook). •Credit rating agencies likely would’ve downgraded WFC debt—causing even more panic. ⸻ 🔚 X. Possible Insolvency Spiral If unrealized losses had to be realized, and no lender of last resort stepped in, Wells Fargo could have slipped into a technical insolvency spiral: •Negative equity → downgrade → capital flight → default risk. •Not overnight—but dangerously fast in a high-rate, high-volatility environment. Bottom Line: That $188B wasn’t just opportunistic—it was a life raft. Without it, WFC might’ve been the next SVB, but far larger and more systemic. XXXXXX engagements  **Related Topics** [cracks](/topic/cracks) [happened](/topic/happened) [$wfc](/topic/$wfc) [stocks financial services](/topic/stocks-financial-services) [stocks banks](/topic/stocks-banks) [Post Link](https://x.com/1CoastalJournal/status/1945239559161463036)
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The Coastal Journal @1CoastalJournal on x 14.6K followers
Created: 2025-07-15 21:50:26 UTC
If Wells Fargo hadn’t borrowed that $XXX billion in short-term funding—via repo markets and other liquidity facilities—the implications would’ve been severe, and possibly systemic. Here’s the breakdown of what likely would’ve happened:
⸻
🔻 X. Liquidity Crisis
Wells Fargo wouldn’t have had enough cash on hand to meet short-term obligations: •Customer withdrawals could’ve triggered a classic bank run. •Loan and credit line funding might have been delayed or halted. •Interbank trust would have collapsed—other institutions would view WFC as a default risk.
⸻
📉 X. Forced Asset Sales
To raise cash, WFC would’ve been forced to dump securities—most likely long-duration Treasuries or mortgage-backed securities that are underwater due to rate hikes. That would mean: •Realizing billions in losses on paper (HTM and AFS books). •Market contagion—fire sales would hit bond prices systemwide, sparking mark-to-market losses for other banks.
⸻
💥 X. Regulatory Intervention or Downgrade
Without that backstop, the Fed and FDIC may have: •Stepped in early to arrange emergency liquidity. •Pushed for asset restructuring or depositor backstops (e.g., SVB playbook). •Credit rating agencies likely would’ve downgraded WFC debt—causing even more panic.
⸻
🔚 X. Possible Insolvency Spiral
If unrealized losses had to be realized, and no lender of last resort stepped in, Wells Fargo could have slipped into a technical insolvency spiral: •Negative equity → downgrade → capital flight → default risk. •Not overnight—but dangerously fast in a high-rate, high-volatility environment.
Bottom Line:
That $188B wasn’t just opportunistic—it was a life raft. Without it, WFC might’ve been the next SVB, but far larger and more systemic.
XXXXXX engagements
Related Topics cracks happened $wfc stocks financial services stocks banks