The repo--or repurchase--market is about to undergo some significant changes. As the Financial Times reported last week, there is concern that the structure of the repo market sped up the collapse of markets after Lehman Brothers failed last year, and that the Fed needs to "cut the risk of relying on this type of short-term funding, which can evaporate quickly in a crisis and potentially roil a clearing bank." Marketplace's Paddy Hirsch explains why the government is interested in shoring up the repo market in this Whiteboard video:
Posted
06-29-2009 2:39 PM
by
Graham Griffith