Fixing the Biggest Pipes in the Plumbing of Our Financial System
Автор: Stanford Graduate School of Business
Загружено: 2011-11-21
Просмотров: 2263
Описание:
Professor Duffie discusses the latest news on the repair of one our financial system's most critical pieces of infrastructure, the tri-party repo market. Some of the world's biggest banks finance their inventories of securities in this overnight lending market. The daily credit granted to an individual bank through this market can routinely exceed $100 billion. The giant tri--party repo "money pipes," through which cash flows to these banks, are about to undergo a complete overhaul, prompted by weaknesses that came to light with the failure of Lehman Brothers in 2008. Professor Duffie explained the current market design, the proposed new design, and the concerns over systemic risk that led to the new design, and some remaining longer-run issues.
Related Links:
https://gsbapps.stanford.edu/facultyp...
http://www.gsb.stanford.edu/news/head...
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