TL;DR
Records reviewed by DCReport show the New York Fed made repeated, largely unpublicized cash infusions into banks from late October through December 2025, including a $17 billion transfer the morning after Christmas. A Dec. 10 NY Fed policy change removed an aggregate operational limit on standing overnight repo operations, a move DCReport says could allow much larger daily access to cash.
What happened
Documents examined by DCReport’s correspondent indicate the Federal Reserve Bank of New York began routinely supplying large amounts of cash to one or more banks beginning Oct. 31, 2025, when more than $50 billion was reportedly delivered. According to the reporting, the NY Fed provided cash to banks on roughly 14 occasions afterward, with a $17 billion transfer recorded at 8 a.m. the day after Christmas. The Fed does not name recipients of these transfers in its public records. On Dec. 10 the NY Fed changed the terms of its standing overnight repo operations, stating there would no longer be an aggregate operational limit. DCReport interprets the change as potentially permitting hundreds of billions of dollars in daily cash access. The outlet identified Bank of America, Barclays, Citi, HSBC, UBS and JPMorgan Chase as likely beneficiaries based on other records it reviewed.
Why it matters
- Large, repeated cash infusions could signal funding stress at major banks, raising questions about financial stability.
- An open-ended repo policy increases central bank capacity to supply cash and may change market expectations about lender-of-last-resort support.
- Lack of transparency about recipients complicates public and market assessment of which firms face liquidity shortfalls.
- Frequent use of Fed facilities can create moral hazard if banks expect regular emergency support rather than market discipline.
- Allegations of sizable exposures at individual banks (for example, large silver short positions) could amplify systemic risk if accurate.
Key facts
- DCReport found evidence of NY Fed cash injections beginning Oct. 31, 2025, when more than $50 billion was supplied.
- The NY Fed reportedly delivered $17 billion in cash at 8 a.m. the morning after Christmas 2025.
- DCReport counts roughly 14 cash injections into banks between Oct. 31 and late December 2025.
- On Dec. 10, 2025 the NY Fed announced that standing overnight repo operations would no longer have an aggregate operational limit.
- DCReport interprets the policy change as enabling up to about $240 billion in cash access per day under one reading, and up to $80 billion per bank per day under another reading.
- Repos used for the operations involve banks exchanging Treasury securities, mortgages and other collateral for cash at face value.
- The NY Fed’s public records do not disclose which banks received the cash.
- DCReport identified Bank of America, Barclays, Citi, HSBC, UBS and JPMorgan Chase as major beneficiaries based on other records it reviewed.
- DCReport reports JPMorgan disclosed obligations to deliver more than 5,900 tons of silver it does not physically possess and estimates potential exposure as high as $13.7 billion.
What to watch next
- Whether the New York Fed begins to identify recipient banks in future disclosures (not confirmed in the source).
- If the frequency or size of repo operations increases beyond the late-2025 pattern documented by DCReport (not confirmed in the source).
- Any official response from banks DCReport named as likely beneficiaries, including JPMorgan addressing reported silver obligations (DCReport contacted JPMorgan and reported no immediate reply).
- Whether federal regulators or Congress open inquiries into the newly disclosed repo activity or the Dec. 10 policy change (not confirmed in the source).
Quick glossary
- Repo (repurchase agreement): A short-term collateralized loan in which a bank sells securities to the Fed or another counterparty and agrees to repurchase them later at a set price.
- Standing overnight repo operations: A Federal Reserve facility that offers lenders overnight cash against eligible collateral to address short-term funding needs.
- Aggregate operational limit: A cap on the total amount of lending or operations the central bank permits under a particular facility over a given period.
- Short selling: A trading strategy where a seller borrows or contracts to deliver an asset they do not own, betting the price will decline so they can buy it back cheaper.
Reader FAQ
Which banks received the NY Fed cash transfers?
The NY Fed’s public records reviewed by DCReport do not name recipients. DCReport says other records point to Bank of America, Barclays, Citi, HSBC, UBS and JPMorgan Chase as likely beneficiaries.
What changed on Dec. 10, 2025?
The NY Fed said standing overnight repo operations would no longer have an aggregate operational limit, a change DCReport says could expand daily cash access.
Does this amount to a government bailout?
DCReport characterizes the operations as stealthy cash support for banks, but whether the actions legally constitute a formal bailout is not confirmed in the source.
Has JPMorgan responded to the reported silver exposure?
DCReport states it contacted JPMorgan for comment and had not received a reply at the time of publication.
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Sources
- NY Fed cash transfers to banks increase dramatically in Q4 2025
- After Lifting Caps, New York Fed Injects Another $34B
- Fed Injects $40 Billion in December as Global Liquidity Hits …
- Fed minutes reveal an overlooked consensus: $220 billion …
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