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Tom Luongo

@TFL1728

Jan 8

Source: The NY Fed
newyorkfed.org/markets/standi…

Here is the list of the 43 banks who have access to the Fed's SRF - Standing Repo Facility

Notice anything?
Ally Bank
Bank of America, National Association
Banco Popular de Puerto Rico
Banco Santander, S.A., New York Branch
Barclays Bank PLC, New York Branch
BMO Bank N.A.
Canadian Imperial Bank of Commerce, New York Branch
Capital One, National Association
Charles Schwab Bank, SSB
Charles Schwab Premier Bank, SSB
Charles Schwab Trust Bank
Citibank, N.A.
Citizens Bank, N.A.
Comerica Bank
Credit Agricole Corporate and Investment Bank
East West Bank
Fifth Third Bank, National Association
First-Citizens Bank & Trust Company
First Horizon Bank
Goldman Sachs Bank USA
HSBC Bank USA, N.A.
JPMorgan Chase Bank, N.A.
KeyBank National Association
Manufacturers & Traders Trust Company
Mizuho Bank, Ltd., New York Branch
Morgan Stanley Bank, N.A.
Morgan Stanley Private Bank, National Association
MUFG Bank, Ltd., New York Branch
Natixis New York Branch
Navy Federal Credit Union
PNC Bank, National Association
Regions Bank
Royal Bank of Canada, Three World Financial Center Branch
State Street Bank and Trust Company
Sumitomo Mitsui Banking Corporation, NY Branch
The Bank of New York Mellon
The Huntington National Bank
The Norinchukin Bank, New York Branch
Truist Bank
USAA Federal Savings Bank
U.S. Bank National Association
Wells Fargo Bank, N.A.
Zions Bancorporation NA

Those bolded are non-US/non-Japanese banks who have access. The Fed doesn't publish the names of the banks that use the SRF, just the amount borrowed through the facility.

/1

I publish this here to remind everyone that 9 out of the 43 banks on the list have direct international ties to countries who are right now TODAY very angry with the US, primarily the UK, France and Canada.

Then there are at least 4 Japanese banks.

When someone wants to scare you with "ZOMG... the big banks borrowed Umpty-gazillion dollars from the Fed! Here's a lighter for your hair!

the first thing everything thinks is, "JPM or BofA is in trouble.

Maybe, maybe not.

/2

There are a lot of massive banks on this list, many of whom are shitting bricks this morning with Nicolas Maduro in US custody, because they are intimately involved in the Venezuelan story.

Expect there to be a "banking Crisis" soon as one or more of these banks get into trouble and have to borrow at the SRF rate to get the dollars they need.

/3

Read 5 tweets

Tom Luongo

@TFL1728

Mar 4, 2025

Building on things @biancoresearch has talked about.
Trump wants to be repaid for the post-WWII defense arrangements with the EU.

One of the possibilities is a cram down on the debt they have. Trump's opening off is to replace all the existing USTs owned by European banks (not clear if it's commercial + central or just central) with 0%, perpetual or 100-year bonds.

Now, I think this is a pretty hilarious offer especially in light of what I've been saying for 3 years about how the EU + UK complex has been gorging on USTs since Powell began raising rates.... to the tune of $1.1 trillion net/net since Sept 2021.
/1

They did this to manage credit spreads between US and UK/German bonds in order to keep their banks solvent.

Look up Lagarde's Transmission Protection Instrument (TPI), she instantiated in July 2021 in response to Powell's 75 bps raises back then.

The speculation then was to help the ECB manage the Italian/German spreads which were blowing out... @zerohedge covered it that way back then.

It wasn't.... the real control lever is US yields, against which all other debt is measured. Control the long-end of the US YC, you control global rates.
/2

Now, that the Euro-zone + UK and subsidiaries (Caymans, Canada, Bermuda, BVI, etc) are the largest holders of US debt, the bulk of which were bought at much lower prices, higher yields, Trump wants to cram them down to 0%
/3

Read 8 tweets

Tom Luongo

@TFL1728

Dec 17, 2023

Last year when the @PeterZeihan's of the world were calling for a 5 million bbl/day collapse of output I told you about the importance of the ESPO pipeline, which could double it's flows to 1 million bbls/day.
/1
archive.ph/nTTZk

Now look for Russia to double ESPO again after finishing the port upgrades at Kozmino

/2tass.com/economy/1555847

Transneft is more than prepared to expand the Eastern Oil route.
/3
tass.com/economy/1553297

Read 5 tweets

Tom Luongo

@TFL1728

Oct 10, 2023

After this weekend's upside results for @AfD in Hesse and Bavaria I want to remind everyone that this time is different for them as compared to 2018.

They have transformed into the "solutions for Germany" Party, like I said they needed to become then. /1
tomluongo.me/2018/06/18/cro…

Because they didn't rebrand themselves in 2018-19 they were easy pickings during COVID which saw their support drop to a low of 10%. They failed to cross the 16% chasm and fell back.

But, they were on the right side of the issues, German voters needed to catch up to them. /2

They would do so because once Merkel was gone, the rebrand under Alice Weidel could finally take root. They went from the "Anti-Merkel" party on immigration to the "Pro-Germany" party on immigration, war, and the economy.
/3

Read 8 tweets

Tom Luongo

@TFL1728

Sep 25, 2023

So, the YC is steepening this morning thanks to @SecYellen panicking on Friday, announcing Yield Curve Control.

Note the 5yr/7yr spread is about to turn positive!

This is killing the euro and the Eurobond markets.
/1

Euro below the 1-bar Quarterly Reversal level of 1.0633 and falling fast. /2

German 10-year at 2.79% and rising (up 5 bps today). /3

Read 5 tweets

Tom Luongo

@TFL1728

Sep 5, 2023

Niger’s former “independent government”was allowing France to take Uranium out of the country for $0.80/kg. Current price is $150.

The junta just raised the price to France to €200 or $185.

But France isn’t dependent on Nigerien Yellowcake, or so the bots kept scolding me last week

France’s budget is a complete nightmare, and unlike other members of the EU it can violate budget rules b/c some PIGS are more equal than others /2

goldgoatsnguns.slack.com/files/U02DSF8F…

Go back and reread what I wrote about Niger and France in July

/3

tomluongo.me/2023/07/07/mac…

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