Wall Street, Fed prep to avoid year end disruption in repo markets

Financial Post | Dec 12, 2019 at 6:00 AM
  • With memories of September’s historic spike in short-term funding costs still raw, Wall Street and the Federal Reserve are gearing up for another potential cash crunch at year end.
  • Some large banks may scale back lending in the repo market in an effort to shrink their balance sheets to avoid regulatory penalties.
  • Fed officials are still discussing the merits of a potential standing repo facility.