U.S. regulators signal openness to rethinking practices that caused repo market woes
In a potential win for the banking industry, two top U.S. regulators on Wednesday signaled they may be open to changing supervisory practices that may have contributed towards disruption in the overnight lending markets.
Testifying before the House of Representatives Financial Services Committee, Federal Reserve Vice Chair Randal Quarles said the central bank is reviewing its supervisory practices in the wake of a September liquidity crunch in the “repo” market.
Also on Wednesday, a U.S. Treasury Department-led regulatory panel charged with monitoring financial risks will formally recommend watchdogs review causes of the problems and whether they could pose risks to the overall system, according to a Treasury official.
The full article is available at https://www.reuters.com/article/us-usa-congress/feds-oversight-practices-may-have-contributed-to-repo-market-issues-quarles-idUSKBN1Y826B?il=0