US Fed Policy-Makers Debate Merit Of A Repo Facility

Discussion in 'Wall St. News' started by Stockolio, Jul 10, 2019.

  1. https://www.nytimes.com/reuters/2019/07/10/business/10reuters-usa-fed-repofacility.html

    Federal Reserve officials argued the pros and cons of a possible policy tool that allows banks to borrow from the U.S. central bank using Treasuries and other securities as collateral, minutes of the Fed's June policy meeting released on Wednesday showed.

    Such a standing fixed-rate repurchase agreement, or repo, facility would serve as a backstop against sharp spikes in interest rates in money markets, which are occurring with growing frequency at month- and quarter-end.

    These jumps in interest rates for banks and Wall Street to borrow from one another could disrupt the broader financial markets if they cannot raise enough cash to fund trades or to meet regulatory requirements.

    Fed creating swap lines with big American Banks ? Jamie Diamond should just run for president cause he's gonna running the country as of next year! Fuck QE5, if this goes through after the upcoming crisis, throw the kitchen sink, the fridge and buy the dip in Wall St banks... Wall St will own everything, without any chance of any blow ups in theory.

    In time they will release more details I am sure, some believe this is QE5, who knows...