Wall Street Is Jumping Back In To The Market That Killed Lehman Brothers


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This post originally appeared at The Street.Wall Street is jumping back into the risky $1.6 trillion “repo” market with some of the biggest U.S. banks — including Bank of America (BAC), JPMorgan Chase (JPM) and Wells Fargo (WFC) — leading the charge.

Shunned after the 2008 financial crisis after killing Lehman Brothers — and nearly cutting General Electric’s (GE) financial throat — repos, or repurchase agreements, are enjoying a Wall Street renaissance, according to a report released Friday by Fitch Ratings.

“Since the peak of the U.S. financial crisis, risk appetite in the [repo] market is gradually recovering,” Fitch said in its report. “Repo markets, once viewed as a relatively mundane utility within the financial system architecture, are the subject of growing public interest in “shadow” banking.”

Read the rest of the story at The Street.

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