‘This Is Crazy!’: Wall Street Scurries to Protect Itself in Repo Surge

  • After first-in-decade intervention, dealers brace for another
  • ‘Today was a bit of a watershed event’ with spike in rates
N.Y. Fed Takes $53.2 Billion of Securities, Treasuries in Repo Op
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The word went out even before the opening bell: the Fed had to step in.

Up and down Wall Street, phones lit up Tuesday morning as a crucial market for billions in overnight borrowing suddenly started to dry up. What had begun on Friday, with tremors inside U.S. short-term funding markets, was escalating rapidly.