8 ms·

I'm pretty skeptical of the reporting of this. The writing itself is quite subpar and the sourcing is touchy to say the least. I just picked a blurb at random.

I'm pretty skeptical of the reporting of this. The writing itself is quite subpar and the sourcing is touchy to say the least. I just picked a blurb at random. > Despite his massive personal financial conflicts, Chair Powell has acted with impunity to advantage the Wall Street firms managing his investment fund holdings both before and after the pandemic. Indeed, in late 2019, prior to the COVID-19 pandemic, Powell directed the Fed to engage in an unprecedented emergency repo program that provided nearly $20 TRILLION in cumulative loans to Wall Street, including ~$3.7 trillion to Japan’s Nomura Securities and ~$1.4 trillion to Germany’s Deutsche Bank trading arms. Industry experts have opined that the program was in direct violation of the Dodd-Frank Act.24 > 24 https://wallstreetonparade.com/2022/01/a-nomura-document-may-shed-light-on-the-repo-blowup-and-fed-bailout-of-the-gang-of-six-in-2019/ https://wallstreetonparade.com/2022/01/a-nomura-document-may... By Pam Martens and Russ Martens > Mr. Martens’ career spans four decades in publishing and printing management, including magazine and music publishing and the non-profit sector. Mr. Martens has received numerous awards in publishing and graphic design. > Ms. Martens worked on Wall Street for 21 years. The last decade of her career was spent as an outspoken critic of Wall Street’s corrupt practices, its private justice system and the repeal of the Glass-Steagall Act. Except there's no listed institutions / non-profits / publishers of note. If this is their bombshell article, and this is the strongest source they can pull up, it's pretty weak. Wall Street On Parade is also banned on reddit for vote manipulation apparently. Searching on Google for Wall Street on Parade leads to r/GMEJungle r/Superstonk etc etc. Which leads me to believe there's a 99% chance this article is a conspiracy theory written by QQQanon.

thawaya3113 5y ago
For context, DB’s latest balance sheet has their total assets at $1.3Tn. Net assets and shareholder equity on the balance sheet are obviously far lower due to liabilities. Point is, the apparent loan is greater than their entire assets and much greater than all their liabilities. Unless this 1 publicly traded bank is carrying trillions in secret liabilities, why would they even borrow that much from the Fed.
- MatteoFrigo 5y ago
  TFA has no idea what they are talking about. They are just adding the amount of rolled-over repos. For example, assume that I lend you $1000 for one day. The following day you pay me back $1000 plus interest, and I lend you $1000 for another day. We keep going for 1000 days, rolling over the debt. TFA would say I have lent you $1M. In reality, I have lent you $1000 for three years or so.
  - thawaya3113 5y ago
    That’s unbelievable and makes no sense. Why would you cumulate overnight repos…
  - MegaButts 5y ago
    > They are just adding the amount of rolled-over repos. Why do you think this?
    - MatteoFrigo 5y ago
      Two reasons. First, TFA states as much: "repo program that provided nearly $20 TRILLION in cumulative loans to Wall Street". Second, the Sep 2019 repo crisis is well-known, it lasted multiple weeks, and it was big enough that the Fed wrote a postmortem about it: https://www.federalreserve.gov/econres/notes/feds-notes/what-happened-in-money-markets-in-september-2019-20200227.htm https://www.federalreserve.gov/econres/notes/feds-notes/what... You can read the details, but the Fed offered very short-term loans in the range of tens of billions, rolled over for an unusually long time.
  - thawaya3113 5y ago
    Good explainer on repos. https://www.brookings.edu/blog/up-front/2020/01/28/what-is-the-repo-market-and-why-does-it-matter/ https://www.brookings.edu/blog/up-front/2020/01/28/what-is-t... It’s a large numbers market. I guess that’s why TFA liked it. It gave them big scary numbers to use.
tablespoon 5y ago
> Chair Powell has acted with impunity Chairs can't act, they can only be passively sat upon.

thawaya3113 5y ago

For context, DB’s latest balance sheet has their total assets at $1.3Tn. Net assets and shareholder equity on the balance sheet are obviously far lower due to liabilities. Point is, the apparent loan is greater than their entire assets and much greater than all their liabilities. Unless this 1 publicly traded bank is carrying trillions in secret liabilities, why would they even borrow that much from the Fed.

MatteoFrigo 5y ago
TFA has no idea what they are talking about. They are just adding the amount of rolled-over repos. For example, assume that I lend you $1000 for one day. The following day you pay me back $1000 plus interest, and I lend you $1000 for another day. We keep going for 1000 days, rolling over the debt. TFA would say I have lent you $1M. In reality, I have lent you $1000 for three years or so.
- thawaya3113 5y ago
  That’s unbelievable and makes no sense. Why would you cumulate overnight repos…
- MegaButts 5y ago
  > They are just adding the amount of rolled-over repos. Why do you think this?
  - MatteoFrigo 5y ago
    Two reasons. First, TFA states as much: "repo program that provided nearly $20 TRILLION in cumulative loans to Wall Street". Second, the Sep 2019 repo crisis is well-known, it lasted multiple weeks, and it was big enough that the Fed wrote a postmortem about it: https://www.federalreserve.gov/econres/notes/feds-notes/what-happened-in-money-markets-in-september-2019-20200227.htm https://www.federalreserve.gov/econres/notes/feds-notes/what... You can read the details, but the Fed offered very short-term loans in the range of tens of billions, rolled over for an unusually long time.
- thawaya3113 5y ago
  Good explainer on repos. https://www.brookings.edu/blog/up-front/2020/01/28/what-is-the-repo-market-and-why-does-it-matter/ https://www.brookings.edu/blog/up-front/2020/01/28/what-is-t... It’s a large numbers market. I guess that’s why TFA liked it. It gave them big scary numbers to use.

tablespoon 5y ago

> Chair Powell has acted with impunity Chairs can't act, they can only be passively sat upon.