Foreign banks say new Fed rules could force them out of repo markets

Repo and securities lending “will be the first casualties of the new Fed standards”

Michel Barnier
Michel Barnier: measures "are not a good signal"

New rules for foreign banks operating in the US have already prompted Deutsche Bank to plan a $100 billion reduction of its balance sheet there, with the axe set to fall on repo and securities lending businesses particularly – which do not generate enough revenue to justify the capital and liquidity costs they would incur under the regime. Now, other banks say they could follow suit. 

That would confound the expectations of the Federal Reserve, which argued foreign banks would choose to retain m

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