After the controversial bank bailouts and Troubled Asset Relief Program (TARP) in 2008, the Federal Reserve reportedly participated in providing trillions of dollars in secret repo loans to megabanks in late 2019 and 2020. In late March, investigative journalists Pam and Russ Martens of Wall Street on Parade uncovered $3.84 trillion in Fed repo loans to French financial institution BNP Paribas disguised in the first quarter of 2020. Additional data suggests that the Federal Reserve has leveraged secret repo loans to provide a whopping $48 trillion to megabanks in late 2019 and through 2020.
Reports show that the Fed has forwarded tens of trillions to megabanks in 2019 and 2020
While Wall Street anxiously awaits the Federal Reserve's next rate hike decision, a series of investigative reports show that the Federal Reserve has been involved in massive bank bailouts of biblical proportions. The first audit report comes from Pam and Russ Martens of Wall Street on Parade, who accuse the Fed of secretly lending $3.84 trillion to French megabank BNP Paribas in the first quarter of 2020.
The Martens findings highlight many more secret loans originating from a data garbage derived from the branch of the New York Federal Reserve. Data dump shows secret Fed repo loans to megabanks from 17. September 2019 to 2. July 2020. The Wall Street on Parade authors say the media did not report the data dump at all.
"The mainstream media has so far imposed a news blackout on the names of the banks that received the repo loan bailouts and the Fed's data releases," the Martens details reveal. "As of 4:00 p.m. today, we see no other news reports on this critical information that the American people need to see," the authors said on 31. March 2022. As of today, the 13. April 2022, there is no mainstream media that reported this news after Bitcoin.com News had been looking for more information.
The Pam and Russ Martens findings are damning, and the data dump numbers seem almost unfathomable. The report states:
Fed data released this morning show that the trading units of six global banks received $17.66 trillion of the $28.06 trillion in maturity-adjusted cumulative loans, or 63 percent of the total, for all 25 trading firms (primary dealers) that borrowed through the Fed's repo loan program in the first quarter of 2020.
Bailouts for banks on 'brink of failure' and institutions holding mountains of 'risky derivatives'
Other test report published on substack.com written by "Occupy the Fed Movement" also highlights Wall Street on Parade's report explaining how the "NY Fed quietly dumps data on tens of trillions in repo loan bailouts to Wall Street".
Researcher notes that Wall Street wants to keep the Fed's "$48 trillion repo bailout" a secret. The author of Occupy the Fed asks why the Fed did this, and notes that the central bank explains that this was meant to "support overnight credit liquidity". Research adds:
The data tells a very different story. In the fall of 2019, more than 60 percent of repo loans went to just 6 trading houses, "Nomura Securities International ($3.7 trillion); JP Morgan Securities ($2.59 trillion); Goldman Sachs ($1.67 trillion); Barclays Capital ($1.48 trillion); Citigroup Global Markets ($1.43 trillion); and Deutsche Bank securities ($1.39 trillion)." These companies are all exposed to massively risky derivatives, especially Japan's Nomura. In addition, Deutsche Bank was literally on the verge of total failure at the time.
Famed economist tells journalists at Wall Street on Parade that Fed's secret repos are "against the law"
Besides the massive secret repo loans yet another audit report highlights statements by renowned economist Michael Hudson that the Fed's secret loans may have been illegal. Hudson claims there was "no liquidity crisis at all" and "emergency repo loan transactions for a liquidity crisis that has yet to be credibly explained".
Economist explains bailouts were supposed to be stopped by Dodd-Frank Act, but U.S. Treasury Secretary Janet Yellen helped change that. "Well, what seems to have happened was that Janet Yellen, while the Dodd-Frank Act was being rewritten by Congress, changed the wording and said, 'Well, how do we define a general liquidity crisis?' Hudson told the Martens during a phone interview. "Well, it doesn't mean what you and I mean by a liquidity crisis, which means the entire economy is illiquid," Hudson added.
The economics professor at the University of Missouri-Kansas City continued:
[Dodd-Frank] was supposed to say, 'Okay, we're not going to let the banks have their trading facilities, the gambling facilities, derivatives, and just placing bets in the financial markets – we're not supposed to help the banks out of these problems everything.' So I think the reason the newspapers are silent about this is that the Fed has violated the law. And she wants to continue to break the law.
Fed members disagree on whether or not U.S. inflation will persist
As people wait for the Federal Reserve's decision to raise the federal funds rate a second time in 2022, there are a few The Federal Reserve members are split on whether or not inflation will be a big problem in the future and whether or not a series of rate hikes are needed.
The two split members include Federal Reserve Governor Lael Brainard and Richmond Fed President Thomas Barkin. Brainard told the Wall Street Journal that the Fed's "most important job" is to bring inflation down to the 2 percent level. Brainard expects inflation to cool, and Barkin agrees with her.
The president of the Fed's Richmond office said companies need to make their supply chains resilient to potential problems, and Barkin is aiming for a more conservative inflation rate of about 2.4%.
"The best short-term path for us is to move quickly into neutral and then test whether inflationary pressures from the pandemic era are abating and how persistent inflation has become," Barkin told an audience at a Money Marketeers conference in New York. "If necessary, we can move forward," the president of the Richmond Fed branch added.
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Bailouts, bank bailouts, Barclays Capital, bnp paribas, CitiGroup, Deutsche Bank securities, Dodd-Frank Act, famous economist, secret Fed loans, Goldman Sachs, investigative journalists, investigative reporting, JP Morgan Securities, Lael Brainard, liquidity crisis, mainstream media , Martens, Michael Hudson, no liquidity crisis, Nomura Securities, Occupy the Fed, Occupy the Fed Movement, Pam and Russ Martens, repo loan program, Thomas Barkin, Wall Street, Wall Street on Parade
What do you make of reports claiming the Fed was involved in secret bailouts that economist Michael Hudson says violate the law? Do you think the American people should pay attention to this? Let us know what you think about this issue in the comments section below.