Monthly Archives: February 2011

Gallery

Did Citigroup improperly value repo collateral?

Revelations today by Bloomberg columnist Jonathan Weil raise important questions about operations in the repurchase market during the financial crisis of 2007 and 2008. Weil reports that Citigroup Inc. executives knew in February 2008 that the giant bank’s internal controls … Continue reading

Gallery

Credit agencies disagree on Redwood Trust securities

Credit rating agencies disagreed over the ratings for the second issue of securities backed by jumbo home loans that Redwood Trust Inc. of Mill Valley, Calif., has brought to market in 10 months, according to a report today in the … Continue reading

Gallery

The crisis fix needs to be fixed

Adair Turner, chairman of the Financial Services Authority which regulates financial services in the UK, does not believe new laws and regulations passed since the financial crisis of 2007 and 2008 will prevent the next blow-up. Financial institutions need a lot … Continue reading

Gallery

Moody’s optimistic about tri-party repo reform

Moody’s analysts believe reform of the U.S. tri-party repurchase market now underway should substantially reduce a repeat of the bank runs that triggered the financial crisis of 2007 and 2008, according to a Financial Times report on a Feb. 22 teleconference by credit … Continue reading

Gallery

Bernanke emphasizes run on repo and too big to fail

This gallery contains 2 photos.

The biggest threat to the financial system during the crisis was the run on the repurchase market, especially the tri-party operation, Federal Reserve Chairman Ben Bernanke told the Financial Crisis Inquiry Commission in Nov. 17, 2009, testimony just released by … Continue reading

Gallery

Obama housing options silent on repos

The Obama Administration’s proposals to fix housing finance do not mention the repurchase market, would not improve its stability and could make it worse. The proposals, released Thursday, call for completely phasing out Fannie Mae and Freddie Mac and offer … Continue reading

Gallery

Bank panic called key to understanding crisis

Understanding what happened in September and October 2008, when the repurchase and other credit markets were overcome with panic, is the “indispensable beginning” to understanding the new form that financial markets have taken in recent decades – what some call … Continue reading