Repo Path

Reforming Repo Rules

(7) As regards reserve repo securities, it is required to make disclosure of the beginning balance, ending balance and the agreed reserve repo price at maturity of reserve repo securities at each trading place.

Dampening the repo market could be economically useful, because this funding has proven to be unstable Bear Stearns and Lehman Brothers used repo heavily in ways that made them unable to withstand investment reversals elsewhere in their business. The same was true of MF Holdings last fall.

Article 17 Loans and accounts receivable refers to the non derivative financial assets for which there is no quoted price in the active market and of which the repo amount is fixed or determinable.

Man, oh, man!

Stronger, longer term financing might have allowed these firms to survive. If a Tobin tax induced financial institutions to finance themselves with more longer term debt and less overnight repo, it could play a significant stabilizing role.

A dead man, an evil man, a bad man.

Man down! Man down!

Man doesn't eat man.

Another would be to increase financial institutions capital requirements. But these steps must be taken in tandem, because firms and creditors will try to circumvent capital requirements if they see attractive alternative sources of funds like rule exempt repo financing.

He's a man...a real man!

Investigating one man, a single man!

This old man This old man

A rich man, a powerful man.

A man more than a man.

Man, oh, man, what a relief.

MAN 2 Could be anywheres. MAN

The man, boy, get the man!

You support a falling man, and a falling man is a dying man.

White man turning blue. White man need fire inside, make white man warm.

The thin man killed the fat man.

A real man, just a regular man!

A real man, just a regular man!

Hello, old man. Hello, my good man.

You're a man, and I'm a man.

Definitely. A man must be a man.

MAN 2 Well, then I'm throwed. MAN

First, normal bankruptcy rules don t apply to repos. Second, much repo financing flows into large risk taking financial firms like MF Global, Lehman, and Bear Stearns through money market funds, which must invest very short term, because their depositors want immediate liquidity.

This man... the new manager is this man?

What little man? The little man in here.

For this reason a man struggle against man.

He's a mighty brave man, a good man.

A man, a very bad man, killed Gritli.

The man you loved, the man you married.

God did not create man. Man created God.

I'm an old man. A poor old man.

The man cub must be found. Man cub?

meets a man with a rifle, the man with the pistol will be a dead man.

meets a man with a rifle, you said the man with the pistol's a dead man.

After the financial crisis, the United States enacted the Dodd Frank Act to overhaul American financial regulation, with the aim of reducing the risk of another financial meltdown. But it did nothing to reform repo lending arguably the weakest link in the financial chain.

Man

MAN

MAN

Man!