by Pam Martens and Russ Martens
Wall Street on Parade
Remember the Repo Crisis in the fall of 2019 when the Federal Reserve had to jump in with both feet and make billions of dollars in revolving emergency loans each weekday to the megabanks on Wall Street? And remember when Wall Street On Parade was the only media outlet that named the banks that got the money and graphed the largest borrowers when the Fed released the granular loan data two years later?
Well, guess what. Two of the financial firms that played a starring role in the repo crisis of 2019 appear to be part of the cast in the current trading debacle in Japan that’s spilling into global markets – if their share price performance is any indicator.
The graph above shows that the Japanese financial firm, Nomura, and the giant U.S. megabank, Citigroup, are trading in eerie correlation to the trading debacle in Japan. The graph below shows that Nomura was the largest borrower from the Fed in the 2019 repo crisis, borrowing a stunning $3.7 trillion in term-adjusted revolving loans, while Citigroup ranked fifth.