11.12.19
In a recent interview with MarketWatch, Federal Deposit Insurance Corporation (FDIC) Chairman Jelena McWilliams discussed the repo market, LIBOR benchmark transition, and the farm sector’s effect on banks. Regarding the recent spike in lending rates between banks and the seizure of the “repo” market, Williams says that her team is talking to the New York Fed and Federal Reserve Board to determine “whether there was a market inefficiency that [they] just could not have foreseen or have not been able to address.” Williams also said that the FDIC is trying to make sure that banks are not originating new loans based on LIBOR, which will be retired soon. The FDIC is also keeping an eye on loans to farmers, especially “where farmland prices are, because in a lot of cases they’re using their equity in the farmland to get new tools, or refinance existing loans, et cetera.”
Read more via MarketWatch.