NSFR opens up new front in war on repo
The US Federal Reserve wants to make repo trades more expensive and views still-pending rules on bank funding as one policy lever. However, a new draft of those rules goes too far, banks argue, potentially driving up costs by more than 850%. Lukas Becker reports
If the repo market was a cartoon character it would be Scratchy, the unfortunate cat in occasional episodes of The Simpsons. If Scratchy avoids falling into a vat of acid, it means a swarm of flesh-eating bees is just round the corner; if he then leaps into a taxi to avoid them, an even worse fate lies in store. Of course, when all of this happens to an animated cat, it's funny, but those in the repo market are not getting the joke.
On January 12, the industry celebrated its latest reprieve when
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