Fed Considers Policy Changes After Repo Reform Falls Short
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The Federal Reserve said it will increase oversight of reform efforts in the market for borrowing and lending securities and consider policy options after an industry group failed to meet goals for reducing risk.
Restrictions on the types of collateral that can be financed in the tri-party repo market and the development of an industry-financed facility to foster the orderly liquidation of collateral in the event of a dealer’s default are among the options being considered, according to a statement posted to the Federal Reserve Bank of New York’s website today.