Monthly Archives: July 2011

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JPM and BoNY exposed during debt-ceiling crisis

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Editor’s note: It’s a scandal that Bernanke and Geithner handed reform of tri-party repo to  the bankers instead of to Congress and Dodd-Frank and the reform has not been done. Commentary The most vulnerable banks during this U.S. debt-ceiling crisis … Continue reading

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Have you checked your repo market today?

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One of the best ways for RepoWatch readers to see what’s going on daily in the repo market during the U.S. debt crisis is the DTCC GFC Repo Index. If you check the DTCC index now, you will see that average rates on repo loans collateralized with Treasuries, though still low, … Continue reading

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Repo makes the headlines, but similarity to 2008 rarely noted

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The news wires are flooded with stories using the r-word (repo). This is great news. RepoWatch is stoked. Suddenly, it seems that everyone in the financial markets is worried about the repurchase market,  because of the debt-ceiling stand-off in Washington, and … Continue reading

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Watching U.S. money market funds for signs of a run on EU repo

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New reports from Fitch Ratings and the Financial Times say U.S. money market funds are cutting their exposure to European banks, presumably to protect themselves in the event of a full-blown EU debt crisis. But neither report answers a critical question … Continue reading

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If there’s an EU credit panic, repos could transmit it to U.S. banks

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Money market funds, interbank lending and the repurchase market would likely be the key sources of contagion for U.S. banks if Europe’s debt problems panic the credit markets, according to a July 21 article by Jeff Horwitz at the American … Continue reading

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Fear in today’s markets shows failure of Dodd-Frank

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If the financial crisis in 2007-2008 was fundamentally about mortgages, as many believe, why are we facing a similar financial crisis today? Here’s the answer: The fundamental problem three years ago was not mortgages. It was the repurchase market and credit default swaps. … Continue reading

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NY Fed economist buries the bad news about tri-party repo reform

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Commentary From the editor: To those of you who read the latest from the New York Fed’s Liberty Street economists, Stabilizing the Tri-Party Repo Market by Eliminating the ‘Unwind,’ I hope you read to the end of the piece. At … Continue reading