Norinchukin Bank is a Japanese bank with a hefty U.S. investment portfolio (over $800 billion). It is Japan’s largest hedge fund and has branches overseas in New York, London, and Singapore.
Bloomberg notes below that Norinchukin routinely accessed the Federal Reserve discount window for “usual fundraising needs for U.S. dollars.”
Bloomberg Nov 28, 2011:
While the U.S. Federal Reserve’s website says its 97-year-old discount window is designed to “relieve liquidity strains in a depositary institution,” Norinchukin Bank made the discount window part of the business plan. “We used the Fed’s discount window as part of our usual fundraising needs for U.S. dollars,” Junji Okamoto, a spokesman for Japan’s largest lender for farmers and fishermen, said in an interview.
“We did not have any special urgency or specific needs for the borrowing.” The Tokyo-based lender, owned by more than 4,000 shareholders including farm, fishing and forestry cooperatives, kept a $6 billion balance at the discount window from October 2008 through October 2009. Its overall Fed borrowings peaked at $22 billion in June 2009.
Peak amount of debt on 6/29/2009: $22B
Question: If a Japanese Bank / hedgefund with shareholders from 4,000 Japanese cooperatives can routinely draw liquidity infusions from the Federal Reserve, then would there be a reasonable basis for allowing U.S. citizens direct access to the same liquidity?
The Leviticus 25 Plan.