Regulation may force banks out of repo, says NY Fed
The New York Fed's head of financial market infrastructure, Jeanmarie Davis, says some banks will "revisit their presence" in the repo business due to increased regulatory requirements
Banks may consider pulling out of the repurchase agreement and securities lending businesses completely as new liquidity and leverage rules start to bite, according to the Federal Reserve Bank of New York.
"All the capital and liquidity requirements that will affect that book of business are still in development, but certainly we do realise that there will be capital and liquidity charges against these businesses. You can definitely anticipate that all firms will revisit their presence in this
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