Last October, when the wounds from the March 2023 bank failures – which surpassed the global financial crisis in total assets and which sparked the latest Fed intervention, setting the market’s nadir over the past 16 months – were still fresh, we made a non-consensus prediction: we said that since the Fed has once again backstopped the US financial system, “the next bank failure will be in Japan.”
Next bank failure will be in Japan t.co/51eCSNZeIh
— zerohedge (@zerohedge) October 3, 2023
This prediction only got warmer two months later when, inexplicably, Japan’s Norinchukin bank, best known as Japan’s CLO whale, was quietly added to the list of counterparties for the Fed’s Standing Repo Facility, a/k/a the Fed’s foreign bank bailout slush fund.
The Norinchukin Bank, New York branch has been added to the list of Standing Repo Facility Counterparties, effective Dec. 1
great, the Fed is now bailing out Japan's CLO whale.
Can someone please bug the next dinner at Centralbahnplatz 2 18th floor dining room
— zerohedge (@zerohedge) December 1, 2023
Norinchukin, which holds 20% of all foreign bonds held by Japanese banks, is starting a firesale to plug its 2.2 trillion yen in unrealized losses because in Japan they don't have a BTFP facility. t.co/SXjQ0tbRM7
— zerohedge (@zerohedge) June 19, 2024
He who sells first….
h/t jlee2027