Tag: Repo disaster

Four Big Banks Are at the Root of Problematic Fed Repo Operations

From Birch Gold Group

fed repo

In 2008, the “freezing of the repo markets was one of the most damaging aspects” of the financial crisis, according to a report by the Bank of International Settlements (BIS).

This detail sets the stage for an eerie revelation contained in the same report: that four major banks sit at the root of the recent repo crisis that started back in September.

First, a quick refresh on what “repo transactions” are, directly from the BIS report itself:

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