Fed Said to Press BNY Mellon to Speed Repo Market Change
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The Federal Reserve, seeking to cut risks in the financial system, is pushing Bank of New York Mellon Corp. to speed changes in a $1.8 trillion bond-lending market that helped fuel the 2008 crisis.
BNY Mellon, which handles about 80 percent of loans in the so-called triparty repo market, will complete computer upgrades and projects aimed at bolstering the system by 2014, two years earlier than planned, according to a document on its website. The bank had pledged in February to finish the tasks by 2016, prompting the Fed to criticize industry-led reforms as too slow.