Yet Again Big Banks Are Short of Cash. Signs of Another Historic Bailout and Recession to Come?
Ominous signs that at least one of America’s “Too Big to Fail” banks is yet again seriously short of cash emerged this weekend in documents examined by James Henry, DCReport’s economics correspondent.
For the past two months the Federal Reserve has been silently injecting tens of billions of dollars of cash into banks. No one announced this. Henry found the evidence in public records that few, if any, Wall Street journalists consult, but that we routinely review at DCReport.
The Federal Reserve Bank of New York (NYFed), acting like a financial Santa Claus to recklessly naughty bankers, delivered $17 billion in cash to an unknown bank or banks at 8 AM the morning after Christmas.
That’s just the latest scary development that has gone unreported until now.
The sudden spate of cash shortfalls raises serious concerns about the stability of the largest banks and the utter failure of 21st Century regulators to identify problems and protect the public.
The sudden demands for cash to cover shortfalls began on Halloween. That day the NYFed injected more than $50 Billion into one or more unnamed banks. Since then, it has injected tens of billions into banks 14 times, delivering greenbacks galore roughly every third business day.
Contrast this with the five years beginning in July 2020. Virtually no such cash infusions were made during that time, as the graphic below from the NYFed website shows.
While the NYFed doesn’t identify which banks benefitted, other records Henry found indicate that major beneficiaries are Bank of America, Barclays, Citi, HSBC, UBS, and likely of greatest concern the nation’s largest bank holding company, JP Morgan Chase & Co.
There’s more. Cash infusions are likely to grow enormously—and soon.
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