During the 2007-09 financial crisis, it became apparent that weaknesses existed in the design of the U.S. tri-party repo market that could rapidly elevate and propagate systemic risk. This article describes key mechanics of the market, focusing on two that have contributed to its weaknesses and...

This paper studies the risk of "fire sales" in the tri-party repo market, a large and important market where securities dealers find short-term funding for a substantial portion of their own and their clients' assets. We distinguish between fire sales of assets by a dealer who, facing a run that...

Federal interstate banking and branching reform is about to become a reality, with the first phase of new legislation going into effect later this year. Past experience at the state level suggests that reform will accelerate the pace of industry consolidation but may not lead immediately to...