All of the $28 billion was lent to the Fed’s “Primary Dealers,” which are 24 large broker-dealers and banks that are the approved counter parties of the New York Fed. The majority are US operations of foreign financial institutions (highlighted):
- Amherst Pierpont Securities LLC (added to the list in 2019)
- Bank of Nova Scotia, New York Agency (Canada)
- BMO Capital Markets Corp. (Canada)
- BNP Paribas Securities Corp. (France)
- Barclays Capital Inc. (UK)
- BofA Securities, Inc.
- Cantor Fitzgerald & Co.
- Citigroup Global Markets Inc.
- Credit Suisse AG, New York Branch (Switzerland)
- Daiwa Capital Markets America Inc. (Japan)
- Deutsche Bank Securities Inc. (Germany)
- Goldman Sachs & Co. LLC
- HSBC Securities (USA) Inc. (UK & Hong Kong)
- Jefferies LLC
- P. Morgan Securities LLC
- Mizuho Securities USA LLC (Japan)
- Morgan Stanley & Co. LLC
- NatWest Markets Securities Inc. (UK)
- Nomura Securities International, Inc. (Japan)
- RBC Capital Markets, LLC (Canada)
- Societe Generale, New York Branch (France)
- TD Securities (USA) LLC (Canada)
- UBS Securities LLC. (Switzerland)
- Wells Fargo Securities, LLC
These Primary Dealers are the recipients of much of the bailout funds, and they also sell Treasury securities and MBS to the Fed. They’re the primary transmission channel of much of this Everything Bubble Bailout. And now, in addition to the other facilities, they’re getting direct loans under the Fed’s new liquidity programs whose proceeds they’re obligated to channel as directed by the Fed’s bailout programs.
