On Monday DCReport revealed that after going more than five years with little to no cash infusions from the New York fed, one or more of the big Wall Street banks has been requiring gigantic infusions of cash since Halloween. On the day after Christmas at 8:00 in the morning there was a $17 billion cash infusion, our economics correspondent James S. Henry discovered.

Things have taken a turn for the worse.

On Sunday December 28th at 5 PM, when banks are closed, the New York Fed infused one or more Wall Street banks with $34 billion of cash.

Soon after, the Chicago Mercantile Exchange tightened requirements to speculate in silver and gold. The CME, as it’s known to traders, said this was a routine action to make sure the silver and gold markets remain liquid and firm.

The New York Fed does not disclose which banks benefit from these cash infusions, but people who follow precious metals markets and other speculative moves have been pointing for weeks to JP Morgan, the nation’s largest bank. One of JP Morgan’s units disclosed that it sold about 5,900 tons of silver it does not own in what’s known in the trade as a “short sale.”

dcreport.org - NY fed follow up 34b cash infusions wall street