by David Schwartz J.D. CPA | Sep 23, 2013 | All, Change Overview and Rationale, Formal Regulatory Remedies
The purpose of the [full-allotment overnight reverse repo] facility is to establish a floor on money market rates and to improve the implementation of monetary policy even when the balance sheet is large. Even if our balance sheet increases significantly further and...
by David Schwartz J.D. CPA | Sep 12, 2013 | All, Change Overview and Rationale, Disclosure Regimes, Formal Regulatory Remedies, Procedural Changes
On August 29, 2013, the Financial Stability Board (FSB) issued its finalized policy framework for its securities lending and repo workstream. As part of a larger examination of shadow banking, the FSB focused on five specific areas in which policies are needed to...
by David Schwartz J.D. CPA | Aug 21, 2013 | All, Change Overview and Rationale, Formal Regulatory Remedies
In an effort to combat the pro-cyclicality caused by changes in repo and securities lending haircuts during a crisis, the Financial Stability Board has proposed to introduce minimum standards for the calculation of haircuts. In the belief that higher haircuts would...
by David Schwartz J.D. CPA | Aug 19, 2013 | All
The financial crisis revealed weaknesses in the design of the U.S. tri-party repo market that could potentially amplify and propagate systemic risk. Since that time, the New York Federal Reserve Bank has monitored closely the tri-party repo market, and its Treasury...
by David Schwartz J.D. CPA | May 22, 2013 | All, Formal Regulatory Remedies
Treasury Secretary J. Lew still sees money market funds and tri-party repo as unfinished business in the nation’s quest to control risks to financial stability. In May 21, 2013 testimony before the Senate Committee on Banking, Housing, and Urban Affairs, Lew...
