Week of repo turmoil puts Wall Street traders in a spin
Zitat: Others noted that while the repo stress is obvious, it is not yet clear if that is because the amount of bank reserves is inadequate, or whether the cash is simply not getting into the hands that need it. On Friday, after another injection of overnight funds, the Fed said it would extend daily operations until mid-October, while adding another longer-term facility. For now, though, attention is shifting to the end of the year, when banks’ capacity to lend into short-term markets becomes more constrained as they look to tidy up their balance sheets. “The damage is done; the market has been burned,” said a senior Wall Street banker. “The Fed needs to be concerned about what is going to happen at year-end.”
Additional reporting by Colby Smith and Brendan Greeley in New York
