From all the info I could dig up, they are. It's kinda like the lobbyists, the companies they represent and polictians and how they cycle money back and forth. Or the way government funds things like planned parenthood and then PP kicks the money back to Washington in the form of donations. It's the same thing, just a different way of doing it. That's the best way I know to explain.
So who are these businesses borrowing the money from? Obviously it's from a company(s) that has a LOT of capitol to play with. Here's few that might fill the bill: Blackrock Vanguard State Street
Apparently these three companies own the majority of Corporate America. And if that's true then why would anyone actually need a reverse repo in the first place? To cause a massive financial crisis for the regular American Citizen? Just hustling money around for their own benefit.
Maybe your reaction is from the injustice and unfairness and anger at all this because you can see that people don't want to comply but feel like they have no other option.