American Banker/12-9-2019
“The September mayhem in the U.S. repo market suggests there’s a structural problem in this vital corner of finance and the incident wasn’t just a temporary hiccup, according to a new analysis from the Bank for International Settlements.”
USAGOLD note: Another report on the repo market that attempts to explain why it happened. The BIS position that the problem is structural and not a temporary phenomenon comes as a surprise. Now the question becomes how long will the Fed need to provide “temporary liquidity” to a problem that the BIS calls “structural.” Thus far, the gold market’s reaction has been muted. We may learn more later today when the Fed chairman holds his press conference.
Shown – Bank for International Settlements logo
