NY Fed Wants Banks To Cut Back On Repo Trades

Law360, New York (July 19, 2012, 2:28 PM EDT) -- The Federal Reserve Bank of New York on Wednesday pushed banks to lessen their reliance on the roughly $1.8 trillion triparty repo market, a major source of short-term funding for banks, in a bid to reduce risks to the financial system.

The triparty repo market is a way for securities dealers that don't receive regular customer deposits to take out short-term loans from money market funds as a way to get needed cash. Federal regulators told banks that use the market to boost their balance sheets...
To view the full article, register now.