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28 Sep, 2019 14:34

Last week’s repo meltdown points to 2008 financial crisis & may lead to new bank crashes – Keiser Report

Last week’s repo meltdown points to 2008 financial crisis & may lead to new bank crashes – Keiser Report

Forecasting the imminent demise of European banks, an expert talks RT’s Keiser Report through last week’s repo market meltdown and what it may indicate.

The treasuries that settled last week didn’t go well on the funding market – the Fed had to step in and do a $75 billion repo facility on an overnight basis for these treasury securities,” Nik Bhatia of OpenNode.co and Tantra Labs told RT, defining repos as repurchase agreement loans that are secured by treasury collateral.

He emphasized that while the treasury market itself is rather well-bid, the “treasury collateral was at a counter-party that other banks stopped trusting last week.”  Bhatia claims the situation is strongly reminiscent of 2008’s financial crisis, when a number of global financial heavyweights went out of business, like Bear Stearns and Lehman Brothers. Asked for his prediction as to who could be knocked out next, the expert said it would likely be one of the Europeans.

Hard to speculate. My guess is that it is a European bank. We’ve seen a lot of trouble there over the last several years with the banking system. Somewhere in Germany, France or Switzerland,” Bhatia claimed.

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