Monthly Archives: May 2011

Gallery

Fed scholars: A run on the repurchase market caused the financial crisis and will probably happen again

This gallery contains 1 photos.

The financial crisis of 2007-2008 was primarily a run on the repurchase market, when lenders refused to role over their repo loans to large investment banks. This was like bank runs decades ago, when depositors rushed to take their money out … Continue reading

Gallery

U.S. debt default could freeze repo market

This gallery contains 1 photos.

Geithner Last updated June 26, 2012 When Treasury Secretary Tim Geithner says a U.S. default on its debt “would inflict catastrophic, far-reaching damage on our Nation’s economy,” one of his key worries is the repurchase market. That’s because if repo … Continue reading

Advertisement

Gallery

Commentary: Let’s get going on the real story of the financial crisis

This gallery contains 1 photos.

From the editor: RepoWatch’s main purpose is to help professional and citizen journalists start covering the U.S. repurchase market, by bringing together many repo resources in one place and making it easier for beginners to get started. To that end, … Continue reading

Gallery

Money market funds, top repo lenders, may need more reform

This gallery contains 1 photos.

 Three years after the financial crisis, officials are still trying to figure out how to fix money market funds. The Securities and Exchange Commission conducted a round table in Washington, D.C., on “Money Market Funds and Systemic Risk” May 10, to see … Continue reading

Gallery

Securitized banking in Europe still stressed

This gallery contains 1 photos.

Securitized banking continues to be under stress in Europe, as can be seen in two unrelated news reports from Financial News on May 6 that show it is getting harder for some financial institutions to raise cash in Europe. In … Continue reading

Gallery

Is insurance moving more into the shadows?

This gallery contains 1 photos.

Insurance companies are taking advantage of new laws in roughly 30 states that help them hide risks, reduce costs, cut back on reserves and find friendlier regulators, according to a story in the New York Times. From the story, by Mary Williams … Continue reading

Gallery

Black: Why CEOs haven’t been busted

This gallery contains 1 photos.

“Unless you imprison the fraudsters, sophisticated financial scams grow ever more destructive. It seems as if we have forgotten this lesson,” writes William K. Black for Bloomberg News May 10 in an article headlined “Why CEOs avoided getting busted in … Continue reading

Gallery

Trade press tackles tri-party repo

This gallery contains 1 photos.

Freelance business journalist Katherine Heires of MediaKat LLC gives us a rare chance to hear directly from inside the changing world of tri-party repo in a Securities Technology Monitor report May 4. Business is growing even as the interworkings of the … Continue reading

Gallery

Why couldn’t experts see the coming financial crisis in their data?

This gallery contains 1 photos.

In the years leading up to the financial blowout in 2008, the two most important sets of missing data that could have helped experts spot looming trouble were measurements of (1) mortgage quality and (2) repo volumes and collateral quality, … Continue reading

Gallery

Tri-party repo reform seen as helpful but will not avert 2008-style panic

This gallery contains 1 photos.

JP Morgan Chase and Bank of New York Mellon are making good progress in protecting themselves from the tri-party repo risk that threatened their survival in 2008, but little progress is being made in protecting taxpayers who may have to pick … Continue reading

Gallery

The underbelly of securitized banking is emerging

This gallery contains 2 photos.

The underbelly of securitized banking is showing, as investors and traders fight over the scraps left after the financial crisis of 2007-2008. One battle that has gotten media attention is a class action against JP Morgan Chase, where pension funds that were clients … Continue reading

Gallery

Kling doubts repo can be completely fixed, puts focus on interest-rate risk

This gallery contains 1 photos.

Arnold Kling Since the next financial crisis is not likely to mimic the last one, how might RepoWatchers use their understanding of shadow finance to spot the next trouble area? Economist Arnold Kling, a scholar at the Mercatus Center at … Continue reading