Warren Steps Into Repo Turmoil, Asks Mnuchin for Answers
- Senator sent Treasury secretary a letter about repo on Friday
- Warns against using turmoil as excuse to weaken regulations
This article is for subscribers only.
U.S. Senator Elizabeth Warren waded into last month’s turmoil in short-term funding markets, warning Treasury Secretary Steven Mnuchin not to use the incident as a rationale for weakening post-financial crisis regulations.
Warren, a front-runner in the race to challenge Donald Trump in the 2020 U.S. presidential election, sent a letter to the Treasury on Friday. In it, she sought Mnuchin’s views on what triggered the spike in rates for repurchase agreements and expressed concern about potential costs to businesses and consumers if strains persist.