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Mainstream Media Has Morphed from Battling the Fed in Court in 2008 to Groveling at its Feet Today

By Pam Martens and Russ Martens
January 11, 2022



Media LogosIt’s now day 13 since the Fed released the names of the Wall Street trading houses that borrowed $4.5 trillion cumulatively, just in the fourth quarter of 2019, from the Fed’s repo loan facility. Not one mainstream media outlet has reported those names of the Wall Street firms or the amounts borrowed – despite the fact that we have prodded them to do so, and despite the fact that some of the largest borrowers were also bailed out by the Fed during and after the financial crash of 2008.

The Fed, which is releasing the data on a rolling quarterly basis, had previously released the names of the banks and the amounts borrowed for the last 14 days of September 2019. That cumulative total came to $769.2 billion, or an average of $54.94 billion per day that the Fed was throwing at Wall Street’s trading houses. It’s clear there was a financial crisis going on in this pre-COVID era, because the Wall Street banks had requested loans for $850.575 billion in that 14-day span, or $81 billion more than the Fed was offering. And the demands for ever larger loans from the Fed continued to spike through the end of the year in that pre-COVID era.

From September 17, 2019 to the end of 2019, $5.269 trillion was cumulatively doled out by the Fed in repo loans. From the start of the Fed’s repo loan program on September 17, 2019 to its conclusion on July 2, 2020, the Fed funneled $11.23 trillion to trading houses whose names remained secret for a full two years. The trading unit of the largest bank in the United States, JPMorgan Chase, was one of the largest borrowers in 2019. The trading unit of the bank that received the largest bailout in global banking history during and after the 2008 financial crisis, Citigroup, was a major borrower. Goldman Sachs, which has a storied history of reckless and irresponsible behavior, was a major borrower. And the trading units of numerous foreign banks, such as the Japanese bank, Nomura, and German, Deutsche Bank, were large borrowers. (The share price of Deutsche Bank, a major derivatives counterparty to Wall Street banks, was in a death spiral at the time.)

In some cases, the Fed appeared to be customizing loans for specific borrowers -– something that the Dodd-Frank financial reform legislation of 2010 expressly prohibits. On December 17, 2019, the Fed made a 13-day term loan for $6.1 billion. BNP Paribas Securities received $1 billion of that; Daiwa Capital Markets got $100 million; Deutsche Bank Securities took $3 billion; and Societe Generale took the balance of $2 billion. That’s only four firms while the legal mandate of Dodd-Frank is that the Fed can only lend to “broad-based” programs. On the same date of December 17, 2019, the Fed also made an overnight loan of $52.65 billion. Deutsche Bank took three lots of that loan totaling $6.5 billion, bringing its total borrowing on that date to $9.5 billion.

To understand how truly unprecedented mainstream media’s news blackout is, a crucial piece of media history is in order.

Continued below:

https://wallstreetonparade.com/2022/01/mainstream-media-has-morphed-from-battling-the-fed-in-court-in-2008-to-groveling-at-its-feet-today/